The U.S. Department of Justice (DOJ) announced on Tuesday that a Mississippi woman who operated a tax preparation company in Tennessee, pleaded guilty to her role in a scheme that defrauded $80 million in federal pandemic relief funds.
Renata Walton pleaded guilty to orchestrating the fraud scheme that ultimately robbed the government of about $80 million in COVID-19 relief funds, designed to keep small business afloat during the pandemic. She was assisted by her employee, Nicole Jones, who the DOJ said pleaded guilty to her role in the scheme last year.
According to the DOJ, citing court documents, Walton and Jones reported fictitious wages on tax returns in order to falsely claim an employee retention credit (ERC), and made other fraudulent filings to obtain family and sick leave credits, which were designed to support businesses.
Walton also received multiple false forms seeking funding from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), which the DOJ said allowed customers to receive tax refunds in excess of $100,000.
For her role in the scheme, the DOJ said Walton was paid about $15,000 per fraudulent tax refund.
In total, the DOJ stated that the scheme ultimately claimed nearly $80 million in pandemic relief money, defrauding the government of over $52 million.
Walton and Jones face up to 20 years in prison for their conspiracy charges, but also face up to 20 years in prison per count of wire fraud, 10 years for each count of money laundering, three years for assistance preparing false tax returns, and one year for willful failure to file a tax return. According the DOJ, Walton additionally faces up to 20 years for obstruction of justice.
Both women were initially charged in November 2024 with a 53-count indictment. At the time, they were described as residents of Olive Branch, Mississippi. The tax preparation business was located about 40 minutes away in Moscow, Tennessee.
Jones is expected to face sentencing on June 9, while Walton will be in court to receive her sentence on June 18.
Experts have estimated the government was defrauded out of as much as $500 billion during the COVID-19 pandemic.
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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
Image “Renata Walton” by Renata Walton.
