An Arizona resident, Roy L. Layne, pleaded guilty yesterday to wire fraud and filing a false refund claim with the IRS. Layne confessed to illegally obtaining over $850,000 from the IRS and SBA through COVID-19 relief programs.
Court documents reveal that Layne engaged in fraudulent activities in 2020 and 2021 by submitting false applications for fictitious businesses to secure loans from the PPP and EIDL programs. These programs aimed to assist Americans impacted by the economic effects of the pandemic.
Layne falsely stated that his fake businesses employed numerous individuals and generated substantial gross receipts. To support these claims, he fabricated business and employment tax forms, which he filed with the IRS and SBA. As a result, Layne received over $300,000 in loans he was not entitled to.
Additionally, Layne filed fake tax returns seeking nearly $7.5 million in refunds, of which the IRS paid approximately $550,000.
Layne is set to be sentenced on February 3, 2025, facing a maximum of 30 years in prison for each wire fraud charge and five years for the false claim charge. Along with imprisonment, he may also face supervised release, restitution, and monetary penalties, to be determined by a federal district court judge after considering various factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Gary M. Restaino announced Layne’s guilty plea.
The investigation into Layne’s actions was carried out by IRS Criminal Investigations and the FBI. The case is being prosecuted by Trial Attorney Matthew R. Hoffman and Assistant U.S. Attorney Mary Sue Feldmeier.
