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Five current or former IRS employees in Tennessee and Mississippi fraudulently received thousands of dollars in COVID relief funds to finance lavish lifestyles, according to the Department of Justice.
The five suspects allegedly submitted bogus loan applications to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program in an effort to gain over $1 million in funding.
They then used the loan funds to finance their extravagant lifestyles, such as buying new cars, luxury goods, and personal travel, including trips to Las Vegas, according to court documents.
“The IRS employees charged in these cases allegedly abused the trust placed in them by the public,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division is committed to safeguarding that public trust and protecting pandemic relief programs for the American people.”
“This matter demonstrates the brazenness with which bad actors have taken advantage of federal programs meant to help those who suffered most from the COVID-19 pandemic,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The Justice Department will continue to work hard to root out PPP and EIDL Program fraud, including that committed by government employees.” Five IRS employees stole COVID relief funds […]
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