Latest news with #PaycheckProtectionAct
Yahoo
05-05-2025
- Business
- Yahoo
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 / Reach her at tseely@ 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
CBS News
29-04-2025
- Business
- CBS News
Sterling Heights business pays $1.4 million to settle Paycheck Protection Program violation claim
A Michigan business has paid over $1.4 million to settle allegations with the federal government that it falsely claimed eligibility for loan forgiveness under the Paycheck Protection Act. The case against Slifco Electric LLC of Sterling Heights was detailed in a press release issued Tuesday by acting U.S. Attorney Julie A. Beck from the Eastern District of Michigan. Congress created the PPP program in March 2020 to provide emergency assistance to businesses that faced financial challenges at the outbreak of the COVID-19 pandemic. Eligible businesses could apply for loans guaranteed by the Small Business Administration, and additional requirements applied to those seeking to have the loans forgiven at a later date. The agreement settles allegations that Slifco violated the False Claims Act by falsely certifying that it was eligible for full loan forgiveness through the program. The United States had alleged that Slifco Electric failed to disclose that Slifco Electric paid $730,031 in capital distributions to its owner, John P. Slifco, for his personal expenses. That information would have been required as part of the application. "When businesses and individuals obtained COVID-19 relief funds that they didn't deserve, taxpayers were cheated," Beck said in her press release. "This office is committed to addressing fraud perpetrated against government programs, and we will continue to hold accountable those who violate the law." "The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney's Office, SBA's Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties," SBA General Counsel Wendell Davis said in his statement. The matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney's Office for the Eastern District of Michigan, with assistance from the SBA's Office of General Counsel.
