Two Mississippi women were indicted by the U.S. Department of Justice (DOJ) after they allegedly helped their clients obtain $65 million in pandemic relief funding, collecting commissions in the process through their West Tennessee tax preparation business.
The DOJ announced on Wednesday that a Memphis grand jury returned a 53-count indictment charging Renata Walton and Nicole Jones, who both live in Olive Branch, Mississippi, with falsifying business and personal tax returns to obtain significant payments of relief funds designed for individuals and employers during the COVID-19 pandemic through their company, R&B Tax Express, in Moscow, Tennessee.
According to the DOJ press release, Walton (pictured above) and Jones allegedly filed “or COVID-19 related tax credits (namely the Employee Retention Credit and the Sick and Family Leave Credit) to which their clients were not entitled,” leading to “six-figure tax refunds” from the federal government to their clients.
Upon receiving the tax refunds, Walton and Jones would allegedly be paid a portion of the money from their clients, which was then “laundered through local banks.”
The indictment further claims that Walton and Jones failed to file tax returns in 2022 despite running a tax preparation company.
Walton and Jones are both charged with conspiracy to commit wire fraud, 30 counts of wire fraud, 12 counts of money laundering, seven counts of preparing false tax returns, two counts of failing to file taxes, and one count of obstruction of justice.
The DOJ revealed in its press release the women each face a 560-year prison sentence if convicted and confirmed they were both released on a $100,000 bond.
It is unclear if the company remains in operation, but Walton advertised that the firm was accepting new clients in a 2022 post on social media.
The indictments are the latest in a long series of allegedly fraudulent use of COVID-19 relief money as federal watchdogs warn as much as $500 billion was likely stolen through pandemic-era programs. However, neither Republicans nor Democrats have identified an exact number or suggested safeguards to prevent future abuse.
Walton and Jones are not the first Tennesseans to allegedly commit financial crimes related to pandemic funding. Five former IRS employees were arrested in Memphis in 2022 and accused of pilfering more than $1 million in relief funds with luxurious purchases, including a Mercedes-Benz vehicle, a Gucci handbag for men, manicures, and massages.
– – –
Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Renata Walton” by Natus Cosmetics.
