Eight women from North Carolina have pleaded guilty in a massive Covid fraud scheme worth $25 million. The scheme involved filing false tax returns claiming fraudulent refunds based on Covid tax credits.
A key player in the scam was a woman from Robeson County who owned a tax return preparation business. According to federal prosecutors, she conspired with others to prepare false tax returns, claiming refunds based on Covid tax credits.
Seven other co-conspirators were arrested and charged for preparing federal tax returns that included materially false items. The IRS paid out approximately $13,890,697 in fraudulent tax refund claims as a result of the conspiracy.
The woman, 48, who owned the tax return preparation business, faces a maximum term of eight years in prison and a $500,000 fine when sentenced later this year. She will also be ordered to pay a Forfeiture Money Judgment of $13,890,697.00.
Seven other tax return preparers have already pleaded guilty for their roles in the same fraud scheme. They include Tiffany Moody and Shaneen Ray, who pleaded guilty in December 2025, Eyoubo McBurney and Katrena Stanback, who pleaded guilty in September 2025, Jeannie Negron and Sylvia Swindell, who pleaded guilty in August 2025, and Whitnee Leach, who pleaded guilty in May 2026.
