Four charged in 'largest ever' COVID-19 tax fraud scheme
1 of 4 | Federal officials have charged four people from California with what they call the largest COVID-19 tax credit fraud scheme ever identified in the United States, amounting to more than $90 million in payouts. File Photo by Bonnie Cash/UPI | License Photo
June 27 (UPI) -- Federal officials have charged four people from California with what they call the largest COVID-19 tax credit fraud scheme ever identified in the United States, amounting to more than $90 million in payouts.
Two of the defendants are also facing attempted murder charges for shooting one of their co-conspirators, the FBI's Los Angeles field office confirmed in a release.
Kristerpher Turner, Toriano Knox, Kenya Jones and Joyce Johnson are all facing federal conspiracy to commit mail fraud; mail fraud; and conspiracy to submit false claims charges.
Jones and Knox are also facing gun and attempted murder charges for shooting Turner in 2023, in an attempt to prevent him from speaking to authorities.
A federal indictment was unsealed earlier this month against all four.
Officials allege Turner operated the fraud ring that invoiced close to $250 million in COVID-19 relief payments to the federal government.
"In total, from approximately June 2020 and December 2024, the defendants and their co-conspirators submitted and caused the submission of fraudulent forms for at least 148 companies, seeking a total of approximately $247,956,938 in tax refunds to which they were not entitled," the FBI statement reads.
The group ultimately received at least $93 million in Treasury checks from the IRS.
According to authorities, while Turner ran the scheme, Knox, Jones and Johnson served as recruiters, even luring friends and family members aboard and obtaining their personal or business information to submit false benefits claims.
"At some point during the scheme, the now-defendants learned that the IRS and others were making inquiries about their fraudulent activity," the FBI statement reads, alleging Knox and Jones of carrying out a shooting to prevent him from acting as a witness.
Turner was shot in August of 2023 and is now paralyzed.
The FBI, IRS Criminal Investigation section and office of the Treasury Inspector General for Tax Administration were involved in the joint investigation.
All four defendants are facing maximum sentences of 20 years in federal prison for each fraud charge if convicted. Knox and Jones are also facing 30-year sentences if convicted of attempted murder charges, while the gun charges carry maximum penalties of life in prison.
The case is not the first multi-million-dollar fraud committed during the COVID-19 pandemic.
Earlier this month, a June Chicago laboratory owner received a seven-year prison sentence after being convicted of falsifying COVID-19 test results. Authorities contend the fraud scheme generated $14 million.
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