Ex-IRS Officer and Brother Sentenced for Stealing Millions in COVID-19 Relief Funds
A former IRS officer and his brother have been sentenced to prison for their role in a multi-million dollar scheme to steal COVID-19 relief funds, according to a DOJ press release.
Key Points:
Frank Mosley (58) and Reginald Mosley (60) were sentenced to 30 and 12 months in prison, respectively.
The brothers obtained over $3 million in fraudulent Paycheck Protection Program (PPP) loans.
They achieved this by inflating payroll figures and using a company name they didn't own.
Four others were charged for aiding the scheme by allowing the Mosleys to use their businesses for loan applications, receiving a 15% cut in return.
Frank Mosley, a former IRS revenue officer, is accused of using his expertise to cover up the crime.
Pandemic Relief Funds Abused
Prosecutors allege that the Mosley brothers, along with their co-conspirators, exploited the PPP program designed to aid struggling businesses during the COVID-19 pandemic. The brothers submitted fraudulent loan applications in 2020 and 2021, inflating employee numbers and payroll costs for their own company, Forward Thinking Investors Inc. This resulted in them receiving over $1 million in relief funds.
Their scheme didn't stop there. The Mosleys then recruited three other individuals to submit additional fraudulent applications using their legitimate businesses. In exchange for their participation, the co-conspirators were promised a 15% share of the fraudulently obtained funds. A sixth defendant is accused of aiding the Mosleys and others with their fraudulent applications and securing nearly $300,000 in relief funds under a company name she wasn't affiliated with.
All Six Plead Guilty
The two brothers and the four other defendants, Marcus Wilborn, 50, of Elk Grove; Aaron Boren, 56, of Roseville; Scott Conway, 52, of Rocklin; and Kenya Ellis, 55, of Los Angeles, involved in the scheme pleaded guilty to their respective charges. The Mosley brothers received the harshest sentences due to the severity of their crimes and Frank Mosley's prior position with the IRS. The remaining defendants received sentences ranging from 12 to 18 months in prison.
IRS Reiterates Commitment to Accountability
The IRS emphasized its commitment to pursuing those who abuse the financial system, particularly during times of crisis. "No one is above the law," stated IRS-CI Acting Special Agent in Charge Michael Mosley (no relation). This case serves as a reminder that even those entrusted with upholding financial regulations can be held accountable for their actions.