A federal judge has sentenced Lakisha Pearson, 48, of Holly Springs, to over four years in prison for her role in a fraudulent scheme involving the IRS Employee Retention Credit (ERC), according to the U.S. Attorney’s Office for the Northern District of Mississippi.
U.S. District Court Judge Michael P. Mills also ordered Pearson to repay $15,942,586.77 in restitution, the total amount of the fraudulent claims she filed with the IRS.
“Employee Retention Credits were intended to support business owners during the economic downturn caused by the COVID-19 pandemic. However, fraudsters like Pearson exploited this relief program to line their pockets,” said U.S. Attorney Clay Joyner. “We are committed to prosecuting all individuals who steal from taxpayers.”
Pearson, who owned Unity Tax Express, admitted to using the internet to file fraudulent claims for tax credits totaling nearly $47 million. The IRS issued Treasury checks totaling $15.9 million to individuals who believed they were receiving government grants. These claimants were unaware that Pearson had filed tax returns using their identities.
IRS Criminal Investigation Assistant Special Agent in Charge Lisa Fontanette stated, “This case serves as a reminder to tax preparers that they will face significant consequences for abusing their trusted position to defraud the government.”
The investigation was spearheaded by the IRS, and officials emphasize the importance of doing thorough research when selecting a tax preparer during the tax season.
