Four charged in largest COVID-19 tax credit fraud scheme in US history

In a significant development in the ongoing scrutiny of fraud during the COVID-19 relief efforts, federal authorities have charged four individuals from California for their involvement in a major tax credit fraud scheme. This case, identified as the largest of its kind in the United States, involves more than $90 million in fraudulent payouts related to COVID-19 tax credits. The federal indictment unveils that from approximately June 2020 to December 2024, the defendants and their associates submitted numerous fraudulent claims under the Coronavirus Response Credits, which were designed to offer financial relief to businesses affected during the pandemic. Kristerpher Turner, the alleged ringleader of the fraud scheme, was accused of orchestrating a network that falsely invoiced nearly $250 million in COVID-19 relief payments to the federal government. His co-defendants – Toriano Knox, Kenya Jones, and Joyce Johnson – were charged with conspiracy to commit mail fraud, mail fraud, and conspiracy to submit false claims. The fraudulent activity included the submission of false applications for at least 148 companies, ultimately resulting in the appropriation of approximately $93 million in Treasury checks from the IRS. The case took a violent turn when it was revealed that Knox and Jones allegedly attempted to kill Turner in an effort to silence him as a potential witness. This act of desperation occurred after they became aware that the IRS was probing their fraudulent activities. Turner survived the shooting but was left paralyzed. The FBI has indicated that the defendants could face severe consequences if found guilty, including up to 20 years for each fraud count. Additionally, Knox and Jones could face life sentences for attempted murder and serious firearm charges, raising significant questions about the lengths to which individuals will go to cover up their illicit actions. This indictment marks a glaring example of fraudulent schemes exploited during the pandemic when public relief funds were made available for small businesses struggling to stay afloat. The Family First Coronavirus Response Act authorized tax credits aimed at helping businesses retain employees despite widespread shutdowns, but instances of fraud like this case jeopardize the integrity of the intended assistance. The investigation involved multiple federal agencies, including the FBI and the IRS Criminal Investigation section, highlighting the serious efforts being made to curb fraudulent claims amidst the ongoing recovery from the pandemic.