Frost Law
A Nevada woman, Candies Goode-McCoy, pleaded guilty to conspiring to defraud the United States by filing false claims for COVID-19-related employment tax credits according to a Department of Justice press release from February 14, 2025. The fraudulent scheme, which lasted from June 2022 to September 2023, sought over $98 million in refunds, of which the IRS disbursed approximately $33 million.
McCoy, along with her co-conspirators, filed approximately 1,227 false tax returns for various businesses. The fraudulent claims stemmed from the Employee Retention Credit (ERC) and the Paid Sick and Family Leave Credit—both financial relief measures introduced by Congress to support businesses affected by the COVID-19 pandemic.
McCoy personally received over $1.3 million in fraudulent refunds and was paid approximately $800,000 by those for whom she filed the false claims. The funds obtained through the fraudulent scheme were used for luxury cars, gambling, vacations, and other high-end purchases.
The ERC, established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was specifically designed to help businesses retain employees by providing refundable tax credits for wages paid during periods of significant economic hardship caused by the pandemic. The Paid Sick and Family Leave Credit was established under the Families First Coronavirus Response Act (FFCRA) to reimburse businesses for wages paid to employees who were unable to work due to COVID-19-related illness or caregiving responsibilities.
McCoy is scheduled for sentencing on February 23, 2026. Factors such as the extent of financial damage, her level of cooperation with authorities, and any prior criminal history may influence her final sentence. She faces a maximum penalty of 10 years in prison, along with supervised release, restitution, and financial penalties. The final sentence will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other legal considerations.
The case is being investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. The prosecution is being handled by Trial Attorney John C. Gerardi of the Justice Department’s Tax Division and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada.
Federal authorities continue to pursue fraudulent COVID-19 relief claims, emphasizing their commitment to preventing abuse. Recent prosecutions, including those involving fraudulent Paycheck Protection Program (PPP) loans, highlight ongoing efforts to hold individuals accountable for exploiting pandemic aid. If you need assistance with issues related to Covid-19 fraud, don't hesitate to reach out to us at (410) 497-5947 or schedule a confidential consultation with our team of tax attorneys.
A Nevada woman, Candies Goode-McCoy, pleaded guilty to conspiring to defraud the United States by filing false claims for COVID-19-related employment tax credits according to a Department of Justice press release from February 14, 2025. The fraudulent scheme, which lasted from June 2022 to September 2023, sought over $98 million in refunds, of which the IRS disbursed approximately $33 million.
McCoy, along with her co-conspirators, filed approximately 1,227 false tax returns for various businesses. The fraudulent claims stemmed from the Employee Retention Credit (ERC) and the Paid Sick and Family Leave Credit—both financial relief measures introduced by Congress to support businesses affected by the COVID-19 pandemic.
McCoy personally received over $1.3 million in fraudulent refunds and was paid approximately $800,000 by those for whom she filed the false claims. The funds obtained through the fraudulent scheme were used for luxury cars, gambling, vacations, and other high-end purchases.
The ERC, established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was specifically designed to help businesses retain employees by providing refundable tax credits for wages paid during periods of significant economic hardship caused by the pandemic. The Paid Sick and Family Leave Credit was established under the Families First Coronavirus Response Act (FFCRA) to reimburse businesses for wages paid to employees who were unable to work due to COVID-19-related illness or caregiving responsibilities.
McCoy is scheduled for sentencing on February 23, 2026. Factors such as the extent of financial damage, her level of cooperation with authorities, and any prior criminal history may influence her final sentence. She faces a maximum penalty of 10 years in prison, along with supervised release, restitution, and financial penalties. The final sentence will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other legal considerations.
The case is being investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. The prosecution is being handled by Trial Attorney John C. Gerardi of the Justice Department’s Tax Division and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada.
Federal authorities continue to pursue fraudulent COVID-19 relief claims, emphasizing their commitment to preventing abuse. Recent prosecutions, including those involving fraudulent Paycheck Protection Program (PPP) loans, highlight ongoing efforts to hold individuals accountable for exploiting pandemic aid. If you need assistance with issues related to Covid-19 fraud, don't hesitate to reach out to us at (410) 497-5947 or schedule a confidential consultation with our team of tax attorneys.
