Phoenix, Ariz. — A St. David, Arizona man has been sentenced to four years in federal prison for orchestrating a scheme to illegally obtain nearly $1 million in COVID-19 relief funds and tax refunds, according to the U.S. Attorney’s Office for the District of Arizona.
Roy Layne, 44, pleaded guilty to two counts of wire fraud and one count of filing a false claim, officials announced in a Thursday news release.
After serving his prison sentence, Layne will also be under three years of supervised release, and he has been ordered to pay nearly $857,000 in restitution to the U.S. government.
How the Fraud Worked
Prosecutors say Layne falsely claimed ownership of several businesses, filing documents with the IRS and opening business accounts. In April 2020, he submitted a fraudulent application to the U.S. Small Business Administration, claiming to run a wholesale company with 17 employees and annual profits of over $500,000.
In 2021, he applied for and received over $300,000 in Paycheck Protection Program (PPP) loans, meant to assist struggling small businesses during the COVID-19 pandemic.
Layne’s fraud extended beyond relief funds. According to court records, he filed tax returns using stolen identities, ultimately claiming over $7.4 million in fraudulent refunds. The IRS paid out more than $590,000 before the scheme was uncovered.
