07-03-2025
Man and woman plead guilty in refund scheme involving pandemic relief tax credits
NEWPORT NEWS, Va. (WAVY) — A man and woman have pled guilty to involvement in a refund scheme that included pandemic relief tax credits.
Court documents revealed Kendra Michelle Eley filed with the Internal Revenue Service (IRS) eight Forms 941, Employer's Quarterly Federal Tax Returns, for Kreative Designs by Kendra, LLC, between Oct. 11, 2022, and May 24, 2023. The eight forms covered four tax periods in 2020 and four tax periods in 2021.
Eley falsely reported wages paid and federal tax withholdings for eighteen employees on each of the forms despite having none.
In the four forms filed for 2021, Eley claimed false Sick and Family Leave Credits and Employee Retention Credit (ERC) through the Coronavirus Aid, Relief and Economic Security (CARES) Act, totaling approximately $713,000 and $252,000 respectively, with total refunds claimed of over $900,000.
The IRS issued two U.S. Treasury refund checks made payable to 'Kendra M. Eley, Kendra Cleans Maid Services' on Dec. 9, 2022, and on Dec. 13, 2022, totaling $649,050.
On Dec. 23, 2022, Eley and Rejohn Isaiah Whitehead opened a business checking account in the name of Kendra Cleans Maid Services LLC (KCMS), and the signatories on the account were Eley and Whitehead.
Eley and Whitehead falsely represented the nature and extent of KCMS as a business to open the business account. Eley funded the account by depositing one of the refund checks in the amount of $389,640.
On Jan. 9, 2023, Eley wrote Whitehead a check from the account for $20,000. She wrote Whitehead an additional check from the account for $40,000 on Jan. 21, 2023.
On Feb. 13, Whitehead pled guilty to engaging in monetary transactions in criminally derived property. He is scheduled to be sentenced on June 26 and faces up to 10 years in prison.
Eley pled guilty on Thursday to one count each of false claims and engaging in monetary transactions in criminally derived property. She is scheduled to be sentenced on July 9 and faces up to 10 years in prison.
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