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Victorville resident among 4 in California arrested in massive $93M COVID-19 fraud scheme
A Victorville resident was among four Southern California suspects arrested by federal prosecutors Friday in connection with the largest-ever COVID-19 benefits fraud scheme, including two who are additionally accused of shooting and trying to kill the group's ringleader to avoid prosecution, authorities said.
All four defendants face federal charges for their alleged roles in "a $93 million COVID-19 tax credit fraud scheme — considered to be the largest ever identified," the U.S. Department of Justice announced in a written statement.
Joyce Johnson, 55, of Victorville; Kristerpher Turner, 52, of Harbor City; Toriano Knox, 55, of Los Angeles; and Kenya Jones, 46, of Compton were all named in a federal grand jury indictment alleging conspiracy to commit mail fraud, mail fraud and conspiracy to submit false claims, prosecutors said.
Knox and Jones each face additional counts of attempting to kill a witness and using a firearm in furtherance of that crime.
The alleged fraud scheme, which the DOJ said was headed by Turner, revolved around federal "sick and family wage credits," also known as "Coronavirus Response Credits," authorized by Congress in response to the global pandemic.
Under the program, small businesses were able to seek tax refunds meant to reimburse owners for wages paid to employees who were unable to work because of the pandemic and its resulting restrictions.
"Turner operated a tax fraud scheme whereby he and his co-conspirators would submit fraudulent forms to Coronavirus Response Credits for businesses, including bogus companies, that did not pay any sick and family wage credits to any employees at any time," according to the statement.
The defendants are accused of filing for fraudulent benefits on behalf of their own businesses, as well as creating fake businesses and recruiting other business owners to join in the scheme.
Such "fraud clients" included friends, family members, and romantic partners of the co-conspirators, according to the DOJ."
"For each fraud client that obtained Treasury checks through this conspiracy, defendant Turner would charge a percentage of the fraud proceeds that amounted to somewhere between 20 to 40 percent of funds received," the DOJ statement said.
The suspected scammers applied for nearly $248,000,000 in fraudulent tax refunds on behalf of at least 148 companies between 2020 and 2024, prosecutors alleged.
"In reliance on the fraudulent forms and the false statements, the IRS issued Treasury checks in the total amount of at least approximately $93 million," the statement said.
Prosecutors said that as the fraud continued and the investigators continued drawing closer to the alleged criminal enterprise, the group members began to turn on one another.
"According to the indictment, on or about August 29, 2023, defendants Knox, Jones, and others known and unknown to the grand jury, attempted to kill defendant Kristerpher Turner in order to prevent him from speaking to law enforcement about the fraud," according to the DOJ statement.
Turner was shot multiple times "in broad daylight" at a Gardena office park, officials said. He survived the shooting but was left paralyzed by his injuries.
If convicted as charged, Turner and Johnson could each face up to 20 years in federal prison, while Knox and Jones could face potential life imprisonment.
The case was investigated by the FBI, the IRS, and the U.S. Treasury Inspector General for Tax Administration.
This article originally appeared on Victorville Daily Press: DOJ: California High Desert resident accused in $93M COVID fraud
