Pair of tax preparers charged with stealing $65M worth of COVID-19 funds

A pair of tax preparers have been indicted on more than 50 charges for allegedly stealing $65 million in COVID-19 relief funds. Federal prosecutors in Tennessee say that Mississippi natives Renata Walton and Nicole Jones face charges including wire fraud, money laundering and filing false tax returns.

Walton is charged separately with turning in false paycheck protection and disaster loan applications to the Small Business Administration, which carries with it an obstruction of justice charge.

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Both women pleaded not guilty on Monday, Nov. 25, and are out of jail on $100,000 bonds.

The U.S. Attorney’s Office in Memphis said on Wednesday, Nov. 27, that the women used fake numbers sent to the Internal Revenue Service for personal and business loans from 2020 until 2024. Prosecutors allege that the women knowingly applied for COVID-19-related tax credits that their clients were not eligible for.

Federal prosecutors noted that clients received six-figure tax refunds while Walton and Jones would charge them hefty fees, adding that the pair would then launder the money through local banks.

The U.S. Attorney’s Office did not reveal how much money the clients paid the tax preparers but said that Walton and Jones filed fraudulent claims seeking tens of thousands of dollars.

If convicted, prosecutors said the women potentially face decades behind bars. They noted that only Walton faces an obstruction of justice charge, which they revealed could put her behind bars 20 years alone.