Moscow Tax Preparers Indicted for Schemes to Defraud Government of Over $65 Million in COVID-19 Relief
A federal grand jury in the Western District of Tennessee recently returned a 53-count indictment charging two North Mississippi women with multiple schemes defrauding the government of COVID-19 relief funds.
Renata Walton, 44, and Nicole Jones, also known as Nicole Dickerson, 36, both of Olive Branch, Mississippi, are alleged to have falsified numbers provided to the IRS on personal and business tax returns from 2020 through 2024. Walton owns and operates R&B Tax Express in Moscow, Tennessee, where she and Jones prepared tax returns. On behalf of their clients, the two women would file for COVID-19 related tax credits (namely the Employee Retention Credit and the Sick and Family Leave Credit) to which their clients were not entitled. When the fraudulent tax returns were processed by the IRS, the clients received six-figure tax refunds. After the funds were obtained, the clients paid Walton and Jones large fees that the two women laundered through local banks. For tax period 2022, Walton and Jones reportedly failed to file tax returns themselves.
Walton is separately charged with submitting fraudulent Paycheck Protection Program and Economic Injury Disaster Loan applications to the Small Business Administration.
In total, Walton and Jones filed fraudulent claims seeking over $65 million dollars.
The indictment alleges one count of 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.
If convicted of these offenses, Walton and Jones face a maximum penalty of 20 years for each count of wire fraud and conspiracy to commit wire fraud, 10 years for each count of money laundering, three years for each count of preparing false tax returns, and one year for each count of failing to file a tax return. Walton faces 20 years for the sole obstruction of justice count. Both women have been released on a $100,000 bond.
The Internal Revenue Service – Criminal Investigation is investigating the case. Assistant United States Attorney William Carey Bateman III for the Western District of Tennessee is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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