Arizona man sentenced to 4 years in prison for fake tax returns, COVID-19 applications
An Arizona man from Cochise County was sentenced to 4 years in prison plus 3 years of supervised release for filing false tax returns and loan applications for COVID-19 relief funding, the U.S. Department of Justice said.
Roy Layne, 44, pled guilty in August 2024 to two counts of wire fraud and one count of filing a false claim. Layne, from St. David, a small census-designated place south of Tucson, had claimed over $7.4 million in false tax refunds and received more than $300,000 in COVID-19 loans that he was not entitled to, the Justice Department said.
In addition to the prison term, U.S. District Judge John C. Hinderaker also ordered Layne to pay $856,692.91 in restitution to the United States.
According to attorneys and investigators for the government, Layne had filed paperwork claiming he operated a "wholesale" business. He "filed paperwork with the IRS, applied for a business license from the City of Tucson, opened business bank accounts, and filed false employment-related tax returns."
But details of his operations varied. One year, he claimed 17 employees and revenue of more than half a million dollars a year. Then, in a false application for a Paycheck Protection Act loan, he claimed 31 employees and $1.2 million in revenue.
"Layne also used the personal identifying information and identities of other people to file false claims for refunds with the IRS," the DOJ said.
IRS Criminal Investigation and the FBI investigated the case.
Taylor Seely covers Phoenix for The Arizona Republic / azcentral.com. Reach her at tseely@arizonarepublic.com or by phone at 480-476-6116.
This article originally appeared on Arizona Republic: Arizona man guilty of claiming fake employees, revenue on tax returns
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