A Nevada woman recently admitted her involvement in a massive tax credit fraud scheme focused on exploiting COVID-19 employment tax credits. The Las Vegas resident pleaded guilty to conspiring to defraud the United States by fraudulently seeking nearly $100 million in pandemic-related employment tax credits. The IRS paid out approximately $33 million before uncovering the scheme, with McCoy personally receiving over $1.3 million in fraudulent refunds.
The scheme primarily took advantage of the Employee Retention Credit (ERC) and the paid sick and family leave credit, both government initiatives aimed at supporting businesses during the economic downturn caused by the pandemic. Between June 2022 and September 2023, she filed approximately 1,227 false tax returns for her businesses and others, fraudulently claiming refundable credits. She knowingly submitted fabricated claims, despite neither her businesses nor those she filed for being eligible for the credits in the amounts claimed.
Her guilty plea includes charges of conspiracy to defraud the government. As part of her plea agreement, she admitted to knowingly submitting false claims and using the fraudulently obtained funds for personal expenses, including luxury cars, casino gambling, vacations, and other high-end purchases.
The Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration launched an investigation after noticing suspicious patterns in ERC claim submissions. These discrepancies raised red flags, leading to a deeper probe that ultimately unraveled her fraudulent activities. Authorities believe the case highlights broader issues of fraudulent claims during the pandemic.
Law enforcement officials emphasize that such fraudulent activity undermines critical relief programs, burdens taxpayers, and prevents funds from reaching businesses that genuinely need assistance. Billions of dollars were allocated to help businesses survive the pandemic, and the integrity of these programs remains a high priority for enforcement agencies.
She is scheduled to be sentenced on February 23, 2026. She faces a maximum penalty of 10 years in prison, along with supervised release, restitution, and financial penalties. Her case serves as a stark warning against fraudulent misuse of government aid programs and reinforces the need for vigilance in ensuring these funds reach businesses in genuine need.