The COVID-19 pandemic was declared to have ended in May 2023 but prosecution of fraud stemming from the global crisis remains active. The DOJ announced that Roy L. Layne, of Arizona, has pleaded guilty to wire fraud and filing a false claim related to COVID-19 relief.
According to the government, Layne submitted applications with false information regarding sham businesses to obtain loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Loans through the PPP and the EIDL program were offered as financial assistance in response to the COVID-19 pandemic. Layne claimed his purported businesses employed dozens of people and earned hundreds of thousands of dollars. In support of Layne’s fraudulent claims, he submitted false business and employment tax forms that were filed with the IRS. Layne requested and received over $300,000 in loans. Layne also requested $7.5 million in refunds from the IRS and received approximately $550,000.
Layne now faces up to 30 years on each wire fraud charge and five years for submitting a false claim. Layne is scheduled to be sentenced February 3, 2025 and the judge will, amongst other things, utilize the U.S. Sentencing Guidelines to determine his sentence. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to white collar crime. If you need assistance with such a matter, please contact us today.