Jason Toland, a 43-year-old man from Wheatland, California, has been convicted of perpetrating a massive COVID-19 relief scam. Toland, who pleaded guilty to one count of submitting false claims against the United States, is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on October 8, 2024.
According to court documents, Toland attempted to obtain over $13.4 million in COVID-19 pandemic relief, including by filing multiple false tax returns with the IRS seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek over $11 million in such tax refunds to which he was not entitled.
Toland also used the shell companies to fraudulently obtain more than $1.7 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. In one specific instance, on November 18, 2022, Toland filed two false Forms 941 (which are Employer’s Quarterly Federal Tax Returns) to the IRS that resulted in improper refunds in the amount of $210,868 being paid out to Toland.
Of the over $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained over $1.95 million. All the funds Toland received went to his own personal enrichment. As a part of his plea agreement, Toland has agreed to pay $1,952,504 in restitution, plus interest and fees, to the IRS and SBA.
“Tax credits are another face of pandemic fraud, and our COVID-19 Fraud Strike Force will continue to pursue those who abuse them,” said U.S. Attorney Phillip A. Talbert. “The defendant’s false claims targeted credits meant for real businesses suffering real consequences of the pandemic. The U.S. Attorney’s Office remains committed to working with our law enforcement partners to identify and prosecute those who provide false information to seek these credits.”
Toland is facing a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Related Federal Cases
- Crypto Dreams & COVID Cash: Rideshare Driver Accused of $2M Scam · California
- Hand Sanitizer Scam: $2.4M Grab Lands Colorado Man in Court · Colorado
- SoCal Grifter Gets 5.5 Years for SBA Scam · California
- Tax Cheat Gets 18 Months for $1.2M Scam · Alabama
- Artful Dodge: Medicare Scam Unravels · Pennsylvania
Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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