A Las Vegas woman has pleaded guilty to a massive fraud scheme involving nearly $100 million in COVID-19 tax credits, shedding light on the widespread abuse of pandemic relief programs.
At a Glance
- Candies Goode-McCoy pleaded guilty to conspiring to defraud the government
- She filed over 1,200 false tax returns claiming nearly $100 million in COVID-19 tax credits
- The IRS paid out about $33 million, of which Goode-McCoy personally profited $2.1 million
- The case is part of a larger IRS crackdown on Employee Retention Credit (ERC) fraud
- Lawmakers are considering repealing the ERC program to prevent further abuse
Massive Fraud Scheme Uncovered
The Department of Justice has announced that Candies Goode-McCoy, a Las Vegas resident, has admitted to orchestrating a large-scale fraud operation targeting COVID-19 tax relief programs. Over a 16-month period beginning in June 2022, Goode-McCoy filed an astonishing 1,200 fraudulent tax returns, claiming nearly $100 million in illegitimate tax credits.
The scale of the fraud is staggering, with Goode-McCoy submitting false claims at an average rate of 80 per month throughout the pandemic. Of the total amount claimed, the IRS disbursed approximately $33 million before uncovering the scheme.
Goode-McCoy’s fraudulent activities were not merely a matter of paperwork; they translated into significant personal gain. The Justice Department reported that she pocketed $1.3 million directly from the fraudulent claims and received an additional $800,000 from her unsuspecting clients.
Instead of using these ill-gotten funds for legitimate business purposes, Goode-McCoy indulged in a lavish lifestyle. The money was reportedly spent on gambling, vacations, luxury cars, and designer clothing, highlighting the personal nature of her motivations.
IRS Crackdown on ERC Fraud
The case against Goode-McCoy is part of a broader effort by the Internal Revenue Service to combat fraud related to COVID-19 relief programs, particularly the Employee Retention Credit (ERC). The ERC was designed to help struggling businesses retain employees during the pandemic, but it has become a target for widespread abuse.
The IRS has initiated 450 criminal cases involving nearly $7 billion in potentially fraudulent claims. This aggressive stance underscores the seriousness with which the agency is treating ERC-related fraud and its commitment to protecting taxpayer funds.
In response to the rampant fraud, lawmakers have introduced the Employee Retention Tax Credit Repeal Act. This legislation aims to prohibit the processing of ERC claims after January 31, 2024, and increase penalties for fraudulent activities. The move reflects growing concern over the sustainability and integrity of COVID-19 relief programs.
As for Goode-McCoy, she faces severe consequences for her actions. Under a plea agreement, she has agreed to return most of the $33 million obtained through fraud. Additionally, she could face up to 10 years in prison, with sentencing scheduled for February 2026. The case serves as a stark warning to others who might consider exploiting government relief programs for personal gain.
People who committed these crimes thought they got away with it…but they haven’t.
