West Tennessee Tax Preparers Indicted for Schemes to Defraud Government of Over $65 Million in COVID-19 Relief
Renata Walton and Nicole Jones, both from Olive Branch, Mississippi, have been indicted on 53 counts related to a scheme to defraud the government out of COVID-19 relief funds.
The Allegations
- Falsified Tax Returns: Walton, who owns R&B Tax Express in Moscow, Tennessee, and Jones allegedly falsified information on their clients’ tax returns to claim COVID-19 related tax credits that they were not entitled to.
- Huge Refunds and Fees: These fraudulent returns resulted in clients receiving six-figure tax refunds, and Walton and Jones would then collect large fees, which they laundered through local banks.
- Fraudulent Loan Applications: Walton is also accused of submitting false applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
- Millions in Fraudulent Claims: In total, the indictment alleges that Walton and Jones filed fraudulent claims for over $65 million.
Charges and Potential Penalties
The charges against Walton and Jones include:
- Conspiracy to commit wire fraud
- Wire fraud
- Money laundering
- Preparing false tax returns
- Failing to file taxes
- Obstruction of justice (Walton only)
If convicted, they could face up to 20 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years for each count of money laundering, and various other penalties.
Important Note: An indictment is merely an accusation, and both women are presumed innocent until proven guilty in a court of law.
Investigation: The Internal Revenue Service – Criminal Investigation is investigating the case.
Prosecution: Assistant United States Attorney William Carey Bateman III for the Western District of Tennessee is prosecuting the case.
