Roy Layne, COVID-19 and Tax Fraud, Arizona 2024

Arizona Man Sentenced to Prison for COVID-19 and Tax Fraud

An Arizona man has been sentenced to 4 years in prison for filing false tax returns and loan applications to obtain COVID-19 disaster relief.

Roy Layne of St. David, Arizona, created the appearance of operating several businesses by filing paperwork with the IRS, applying for a business license from the City of Tucson, opening business bank accounts, and filing false employment-related tax returns.

In April 2020, Layne filed an application with the U.S. Small Business Administration, claiming he operated a 'wholesale' business with 17 employees that had revenue of more than half a million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act Loan, claiming that same 'wholesale' business had 31 employees, and $1.2 million in revenue.

Layne ultimately received $306,700 in COVID-19 related loans to which he was not entitled. In addition, he used the personal identifying information and identity of another person to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid $590,000.

U.S. District Judge John C. Hinderaker ordered Layne to serve three years of supervised release and to pay $856,692.91 in restitution to the United States.

The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier of the District of Arizona are prosecuting the case.

The sentencing brings an end to a scheme that involved the exploitation of COVID-19 relief programs. Layne's actions demonstrate a blatant disregard for the law and the trust placed in him by the public.

Defendant: Roy Layne

Criminal Charges: Filing false tax returns and loan applications to obtain COVID-19 disaster relief

City and State: St. David, Arizona

Date: Not specified

Sentence: 4 years in prison, 3 years of supervised release, and $856,692.91 in restitution

Dollar Amounts: $306,700 in COVID-19 related loans, $590,000 in false refunds, and $7.4 million in total false claims

Source: https://www.justice.gov/opa/pr/arizona-man-sentenced-prison-covid-19-and-tax-fraud