Las Vegas Woman Pleads Guilty to $98 Million COVID-19 Relief Fraud
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Las Vegas resident candies Goode-McCoy pleaded guilty on feb. 14, 2025, to conspiring to defraud the United States by fraudulently claiming COVID-19-related employment tax credits, according to a joint announcement from the Justice Department’s Tax Division and the U.S. Attorney’s Office for the district of Nevada.
Court documents detailed a scheme involving approximately 1,227 false tax returns filed between June 2022 and September 2023. Thes returns, filed for McCoy’s businesses and others, sought fraudulent refunds based on the employee retention credit (ERC) and paid sick and family leave credit. The total amount claimed exceeded $98 million, with the IRS paying out approximately $33 million. McCoy personally received over $1.3 million in fraudulent refunds and an additional $800,000 from those for whom she filed the fraudulent returns. McCoy knew that these returns were fraudulent. Neither she nor the others for whom she filed them were eligible to receive the refundable credits in the amounts claimed,
according to the announcement.
The fraudulently obtained funds were used for personal enrichment, including the purchase of luxury cars, gambling, vacations, and other luxury goods. This case starkly illustrates the significant misuse of funds intended to provide economic relief during the COVID-19 pandemic.
The ERC and paid sick and family leave credit were authorized by Congress to assist small businesses struggling with the economic fallout of the pandemic. The ERC aimed to reduce employment taxes owed to the IRS, while the paid sick and family leave credit reimbursed businesses for wages paid to employees unable to work due to COVID-19-related illness or family leave. This credit was capped at a maximum amount.
McCoy’s sentencing is scheduled for Feb. 23, 2026. she faces a maximum penalty of 10 years in prison, along with supervised release, restitution, and monetary penalties. A federal district court judge will determine the final sentence, considering the U.S. Sentencing Guidelines and other relevant factors.
Acting Deputy Assistant Attorney General Karen E. Kelly and Acting U.S. Attorney Sue Fahami made the announcement. the investigation was conducted by IRS Criminal Investigation (IRS-CI) and the Treasury Inspector General for Tax Management. Trial Attorney John C. Gerardi and Assistant U.S.Attorney Richard Anthony Lopez are prosecuting the case.
IRS-CI, the investigative arm of the IRS, focuses on financial crimes including tax fraud, money laundering, and public corruption. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate.
The agency operates 20 field offices across the U.S. and 14 attaché posts internationally.
the Shocking Reality of COVID-19 Relief Fraud: A Deep Dive with Fraud Expert Dr. Jane Mitchell
Editors’ Note: In this exclusive interview, we unpack the disturbing case of massive COVID-19 relief fraud in Las vegas with fraud expert Dr. Jane Mitchell. Learn what drives these schemes,their impact on society,and how entities combat them.
How Extensive is COVID-19 relief Fraud?
Senior editor: How pervasive is fraudulent activity related to COVID-19 relief programs, like we saw in the recent las Vegas case?
Dr. Jane Mitchell: Fraud during crises tends to rise dramatically, and COVID-19 relief programs were no exception. The rapid deployment of financial aid, such as the Employee Retention credit (ERC) and paid sick leave credits, meant large sums of money were released quickly, making them prime targets for fraudsters. The Las Vegas case highlights a disturbing pattern where accountability measures struggled to keep pace with the urgency of distribution.Such schemes can result in billions lost, severely undermining public trust.
Understanding the Mechanics of Fraud
Senior Editor: Could you explain how such large-scale frauds are typically orchestrated, as seen in las Vegas?
dr. Mitchell: Large-scale frauds frequently enough involve intricate schemes that exploit weak points in the system. In the la vegas case, the perpetrator filed thousands of false tax returns to claim excessive funds by overstating eligibility for credits like the ERC. fraudsters usually collude with insiders,manipulate systems through fake documentation,and use layers of anonymity to hide their tracks. Staying vigilant and improving verification processes are crucial to deter such frauds.
Past Context and Patterns
Senior Editor: Is the manipulation of relief funds unprecedented,or do we see similar patterns in history?
Dr. Mitchell: While the scale and context might vary, history is littered with examples of relief fraud. For instance, during the Great Depression, relief programs also faced widespread abuse, much like we see with modern schemes. The consistency across eras reflects a essential challenge in designing robust support systems that balance speed with security.
Real-World Examples and Impact
Senior Editor: What impact do these frauds have on the intended beneficiaries and the community at large?
Dr.Mitchell: The effects are profoundly detrimental. funds intended to support struggling businesses and families are siphoned off,exacerbating financial instability.In the Las Vegas case, over $33 million was disbursed erroneously, potentially depriving genuine businesses of necessary support during a critical period. Beyond direct financial losses, such frauds erode trust in governmental aid programs, making it harder to mobilize support in future crises.
Combating Fraud: Measures and Challenges
Senior Editor: What measures are most effective in combating such fraud, and what challenges do enforcement agencies face?
Dr. Mitchell: Effective measures include advanced data analytics, cross-referencing data across agencies, and enhancing whistleblower protections. Challenges lie in the speed and scale at which funds need to be distributed in crisis times,often at the expense of thorough fraud checks. Agencies like the IRS Criminal Investigation (IRS-CI) play a pivotal role, even though they need continuous resources and technological upgrades to keep pace with sophisticated fraud techniques.
The Future of fraud Prevention
Senior Editor: Where do you see the future of fraud prevention in the context of government relief programs?
Dr. Mitchell: the future likely involves leveraging technology such as blockchain for transparent fund tracking and deploying artificial intelligence for anomaly detection. integrating multi-layered verification protocols while maintaining accessibility will be key. Governments must also foster international cooperation, as fraudsters frequently enough operate across borders.
Taking Action and Staying Informed
Senior Editor: What can individuals and businesses do to protect themselves from being part of, or victim to, such fraudulent schemes?
Dr. Mitchell: It’s critically important for businesses to stay informed about the rules and avoid shortcuts in compliance. Individuals shoudl be wary of unsolicited offers claiming relief assistance, verifying through official channels.Reporting suspicious activities to authorities can prevent wider exploitation.
Key Takeaways:
- Fraud is a pressing issue: Always stay vigilant and informed about legitimate opportunities.
- Technological advancements in fraud detection: Expect more sophisticated tools and practices.
- Collaborative efforts: A global approach is crucial for effective fraud prevention.
final Thought: As we move forward, it’s imperative that both systems and individuals work together to safeguard the integrity of relief programs. By staying informed and proactive, we can collectively combat these pervasive fraud issues.
Engagement with Readers: We invite our readers to share their thoughts on effective fraud prevention measures in the comments below or on social media. Your insights and experiences are invaluable to this ongoing conversation.