The federal government finds Las Vegas resident used COVID relief funds for personal gain.
A Nevada woman has admitted to orchestrating a large-scale tax fraud scheme, attempting to claim nearly $100 million in COVID-19 employment tax credits from the IRS. Before authorities intervened, she managed to secure $33 million. Candies Goode-McCoy of Las Vegas worked alongside others to submit fraudulent tax returns from June 2022 to September 2023. She manipulated the Employee Retention Credit (ERC) and the paid sick and family leave credit to file 1,227 false claims for her businesses and those of her co-conspirators. These tax credits were originally designed to support businesses that suffered financially during the pandemic, allowing them to continue payroll operations and provide relief to employees. However, McCoy and her associates exploited these programs for their own financial gain, seeking excessive refunds they were not entitled to receive.
The Internal Revenue Service (IRS) processed a portion of the fraudulent claims, unknowingly paying out $33 million before the scheme was eventually uncovered. McCoy personally collected over $1.3 million in fraudulent refunds and received an additional $800,000 in compensation from others she assisted in filing false returns. Instead of using these funds for business-related expenses, she spent them on luxury items including personal vehicles, high-end vacations, casino gambling, and other lavish purchases.
The federal government initially introduced these tax credits to support small businesses and their employees who faced economic hardship due to COVID-19 in order to ensure they would be able to stay afloat even amid pandemic lockdowns. The ERC was meant to help businesses retain their employees by reducing employment tax obligations, while the sick and family leave credit reimbursed employers for wages paid to workers unable to work due to illness or caregiving responsibilities during the pandemic. These programs were intended to ease the financial burden on legitimate businesses. Instead, McCoy and her accomplices took advantage of the system for personal financial gain, depriving legitimate businesses of much-needed aid.
Now facing serious legal repercussions, McCoy is scheduled for sentencing on February 23, 2026. She could face a maximum prison sentence of 10 years, along with supervised release, restitution payments, and additional financial penalties. A federal judge will determine her final sentence based on federal guidelines and other legal considerations.
The federal investigation into McCoy’s fraudulent activities was conducted by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Sue Fahami for the District of Nevada announced her guilty plea. The case is being prosecuted by Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada.
Recently, the Department of Justice announced that it would be allocating additional resources towards increasing fraud crack down efforts. This case serves as a stark reminder that fraud within government relief programs will not go unnoticed. Federal authorities continue to track down and prosecute those who abuse financial assistance initiatives meant to help businesses stay afloat. While McCoy awaits her sentence, government agencies remain committed to enforcing the law and ensuring that relief funds reach those who genuinely need them.
Sources:
Nevada Woman Pleads Guilty to Fraudulently Seeking Nearly $100M in COVID-19 Employment Tax Credits
Las Vegas woman guilty of fraud for false COVID-19 tax credit claims
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