A major fraud case linked to COVID-19 relief programs has led to a business owner being sentenced to more than four years in prison. According to the Department of Justice, Candies Goode-McCoy, formerly of Las Vegas, was convicted in a scheme involving fraudulent tax filings, while Todd Blanche, Acting Attorney General, along with officials A. Tysen Duva, Sigal Chattah, John C. Gerardi, and Richard Anthony Lopez, were involved in announcing and prosecuting the case connected to misuse of Internal Revenue Service relief programs.
The case involves the misuse of special tax credits that were introduced to help businesses survive during the global pandemic. These programs included tax credits for companies that retained employees and provided paid sick or family leave during COVID-19.
From June 2022 to September 2023, Goode-McCoy filed more than 1,200 tax returns. These filings falsely claimed eligibility for COVID-19-related credits. The total value of these claims reached nearly $100 million.
Out of this amount, the Internal Revenue Service paid approximately $33 million in refunds. These funds were issued based on incorrect information submitted through the fraudulent filings.
The scheme included filing returns for personal businesses as well as for other individuals. This expanded the scale of the fraud and increased the total financial loss.
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Millions Paid Out Through False Claims
Investigators found that a significant portion of the money was used for personal benefit. Goode-McCoy personally received more than $1.3 million in fraudulent refunds. In addition, she earned around $800,000 from clients for preparing and submitting false tax returns on their behalf.
The money obtained through the scheme was spent on luxury items and activities. These included vacations, expensive cars, and gambling at casinos.
Authorities described the actions as deliberate and repeated. Filing over a thousand false returns showed a clear pattern of fraud. Each claim contributed to the overall financial damage caused to the government.
The tax credits used in this scheme were originally created to help businesses during the pandemic. They were meant to support companies that kept workers employed and provided necessary leave benefits. Misuse of such programs leads to major financial losses and weakens trust in public support systems.
Officials also spoke about the seriousness of the case. Acting Attorney General Todd Blanche stated that efforts to combat fraud are being strengthened. He noted that multiple cases involving large financial losses were addressed on the same day.
Court Sentencing and Financial Penalties
Following the investigation, Goode-McCoy pleaded guilty to conspiracy to defraud the government. This charge relates to submitting false claims to receive funds unlawfully.
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The court sentenced Goode-McCoy to 54 months in prison, which is equal to four and a half years. In addition, she will face three years of supervised release after completing her prison term.
The court also ordered Goode-McCoy to pay more than $26 million in restitution to the tax authority. This amount is intended to recover part of the losses caused by the fraud.
The case was handled by several officials and legal representatives. These included Assistant Attorney General A. Tysen Duva and First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. The prosecution was carried out by Trial Attorney John C. Gerardi and Assistant U.S. Attorney Richard Anthony Lopez.
The investigation was conducted by agencies responsible for tax enforcement and oversight, including IRS Criminal Investigation and the Treasury Inspector General for Tax Administration.
Authorities confirmed that this case is part of a wider effort to identify and prosecute fraud related to pandemic relief programs. On the same day, officials highlighted additional cases involving large-scale financial crimes totaling hundreds of millions of dollars.
The sentencing reflects the seriousness of the offense. Filing false claims on such a large scale is treated as a major financial crime, especially when it involves public funds meant for emergency support.