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 response to courtroom paperwork, Candies Goode-McCoy conspired with others from June 2022 by way of 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 depart credit score. The overall 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 vehicles, on line casino playing, holidays, and different high-end purchases.
The ERC and paid sick and household depart credit had been launched by Congress to help companies impacted by COVID-19, offering tax aid for wages paid to workers unable to work as a result of pandemic. The fraudulent claims exploited these aid applications, diverting funds from companies that genuinely certified for help.
McCoy is scheduled for sentencing on February 23, 2026, going through 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 courtroom decide, contemplating the U.S. Sentencing Tips and different statutory elements.
The case was investigated by IRS Prison Investigation and the Treasury Inspector Basic for Tax Administration. Appearing Deputy Assistant Legal professional Basic Karen E. Kelly of the Justice Division’s Tax Division and Appearing U.S. Legal professional Sue Fahami for the District of Nevada introduced the responsible plea.
The case is being prosecuted by Trial Legal professional John C. Gerardi of the Tax Division and Assistant U.S. Legal professional Richard Anthony Lopez for the District of Nevada.
