Ryan Glidewell, COVID-19 Employee Retention Credit Fraud, Tennessee 2024

COVID-19 Employee Retention Credit Fraud Rocks Tennessee as Ryan Glidewell Pleads Guilty

A Tennessee man has been brought to justice for his role in a scheme to claim refunds based on false COVID-19 employment tax credits. Ryan Glidewell pleaded guilty to conspiring to commit wire and mail fraud, aiding and assisting in the preparation of a false tax return, and money laundering.

According to court documents and statements made in court, Glidewell conspired with others to file false tax returns seeking refunds based on the Employee Retention Credit and paid Sick and Family Leave Credit. These credits were created by Congress to aid struggling businesses during the COVID-19 global pandemic.

Glidewell and his co-conspirators created phony businesses, which lacked any employees or operations, for the sole purpose of falsely claiming the credits. The group filed numerous false tax returns for those businesses and directed the tax refunds to be mailed to addresses they controlled.

As a result of their scheme, the false returns claimed over $3.4 million in tax refunds, of which the IRS paid $1.8 million. Glidewell’s actions have left many wondering how such a large-scale fraud scheme could go undetected for so long.

Glidewell is set to be sentenced on November 12 and faces a maximum penalty of 20 years in prison for conspiring to commit mail and wire fraud, a maximum penalty of 10 years in prison for money laundering, and a maximum penalty of three years in prison for aiding and assisting in the filing of a false tax return.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement. IRS Criminal Investigation and the U.S. Secret Service investigated the case.

Prosecutors say Glidewell’s actions were a blatant abuse of the system and a betrayal of the public’s trust. As the sentencing date approaches, many are left to wonder what motivated Glidewell to engage in such a brazen scheme.

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