Arizona man pleads guilty to COVID loan fraud and tax fraud

Date: Aug. 29, 2024

Contact: [email protected]

TUCSON, Ariz. - Roy L. Layne, of St. David, pleaded guilty yesterday to two counts of wire fraud and one count of Filing a False Claim. Sentencing is scheduled for Feb. 3, 2025, before United States District Judge John C. Hinderaker.

Layne admitted that during the COVID-19 global pandemic he fraudulently applied for U.S. Small Business Administration (SBA) Economic Injury Disaster Loans, SBA Paycheck Protection Program Loans, and pandemic-related tax relief in the names of fictitious business entities, himself, and others. Layne filed numerous fraudulent SBA loan applications, ultimately receiving $306,700 that he was not entitled to. Layne also filed numerous false claims for tax refunds with the Internal Revenue Service totaling over $7.4 million, receiving and keeping $549,992 that he was not entitled to. In his plea agreement, Layne has agreed to pay restitution to the SBA and the U.S. Treasury totaling $856,692.91.

A conviction for Wire Fraud carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both, and a term of five years of supervised release. A conviction for Filing a False Claim carries a maximum penalty of five years in prison, a fine of $250,000, or both, and a term of three years of supervised release.

IRS Criminal Investigation (CI) and the Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, and Department of Justice Trial Attorney Matthew R. Hoffman, Tax Division, Washington, D.C., are handling the prosecution.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.