A Las Vegas lady has pleaded responsible to conspiring to defraud the U.S. authorities by submitting fraudulent tax refund claims for COVID-19 employment tax credit, securing $33 million in improper payouts from the IRS.
In accordance with court docket paperwork, Candies Goode-McCoy conspired with others from June 2022 via September 2023 to file roughly 1,227 fraudulent tax returns claiming refundable employment tax credit, together with the worker retention credit score (ERC) and paid sick and household go away credit score. The whole fraudulent claims amounted to over $98 million, with the IRS disbursing roughly $33 million earlier than the scheme was uncovered.
McCoy personally acquired over $1.3 million in fraudulent refunds and was paid roughly $800,000 by others whose returns she filed. Prosecutors acknowledged she knowingly submitted false claims and used the illicit proceeds for luxurious automobiles, on line casino playing, holidays, and different high-end purchases.
The ERC and paid sick and household go away credit had been launched by Congress to assist companies impacted by COVID-19, offering tax aid for wages paid to workers unable to work because of the pandemic. The fraudulent claims exploited these aid packages, diverting funds from companies that genuinely certified for help.
McCoy is scheduled for sentencing on February 23, 2026, dealing with a most penalty of 10 years in jail, supervised launch, restitution, and financial penalties. The ultimate sentence will likely be decided by a federal district court docket decide, contemplating the U.S. Sentencing Pointers and different statutory components.
The case was investigated by IRS Prison Investigation and the Treasury Inspector Common for Tax Administration. Appearing Deputy Assistant Lawyer Common Karen E. Kelly of the Justice Division’s Tax Division and Appearing U.S. Lawyer Sue Fahami for the District of Nevada introduced the responsible plea.
The case is being prosecuted by Trial Lawyer John C. Gerardi of the Tax Division and Assistant U.S. Lawyer Richard Anthony Lopez for the District of Nevada.
