Skip to content
NOWCAST WLWT News 5 at 4:00
Live Now
Advertisement

COVID-19 relief money snares some Cincinnati business owners in federal fraud investigations

Leading IRS criminal investigator details agency's push to find illegal activity tied to pandemic dollars

COVID-19 relief money snares some Cincinnati business owners in federal fraud investigations

Leading IRS criminal investigator details agency's push to find illegal activity tied to pandemic dollars

WELL THE AMOUNT OF COVID-19 RELIEF MONEY IS JUST STAGGERING A GOVERNMENT WEBSITEUT PS THE TALLY AT 3.7 TRILLION DOLLARS WHEN CASHIK LE TH’T'S FLOATING AROUND TEMPTATION AND UNFORTUNATELY FRAUD OFTEN FOLLOW ASK A LOCAL BUSINESS OWNER WHO GOT A SLICE OF COVID RELIEF MONEY THE RIGHT WAY AND YO’'LL OFTEN HEAR HOW BENEFICIAL IT’S BEEN BUT YOU ALSO CAN FIND PEOPLE ACCUSED OF TAKING A MUCH BIGGER BITE OF THE PIE A PIE MADE OF YOUR TAX DOLLARS THEN THEY WERE SUPPOSED TO PEOPLE GET THIS MONEY AND INSTEAD OF PAYING PAYROLL WH ITIT OR KEEPING THEIR BUSINESS RUNNING. THEY GO OUT AND BUY LUXURY CARS OR LUXURY ASSETS. I’VE LEARNED THE FEDS OR PROSECUTING 17 CASES LOCALLY INVOLVING PEOPLE ACCUSED OF FRAUDULENTLY TAKING MONEY SET ASIDE TO KEEP BUSINESSES AFLOAT. THE DEPARTMENT OF JUSTICE IS HIGHLIGHTING THREE DEFENDANTS. TONY WRIGHT. ALLEGEDLY SWINDLE THE PAYCHECK PROTECTION PROGRAM OUT OF ALMOST 350,000. THIS COMPLAINT SAYS RIGHT YOU SOME OF THAT CASH FOR PURCHASES AT LOUIS VUITTON AND VICTORIA’S SECRET. AN AGENT SAYS RIGHT ALSO SPENT THOUSANDS AT WHAT WAS THEN CALLED JACK CASINO DOWNTOWN AND EVEN BGHOUT A 2020 TESLA MODEL 3 ON YOUR DIME WRIGHT IS SD AITO BE SENTENCED IN OCTOBER THE FBI SAYS KELLY PRATHER A FORMER. MAYORAL CANDADITE IN THE QUEEN CITY TRIED TO GET QUOTE MORE THAN 600,0 I00N FRAUD RELIEF AND FR AUDULENTLY RECEIVED APPROXIMATELY 19,800 COURT DOCUMENTS INDICATE A PLEA DEAL IS IN THE WORKS BUT HAS NOT BEEN FINALIZED A THIRD DEFENDANT MELISSA. MCGEE WAS ARRESTED BY LEASE AND SYCAMORE TOWNSHIP SHE’S ACCUSED OF GETTING 186,000OR WTH OF FRAUDULENT RELIEF FUNDS AND FBI AGENT SAYS SHE USED SOME OF THAT MONEY TO BUY REAL ESTATEUR A JY IS SCHEDULED TO HEAR MCGEE’S CASEHI TS SUMMER WHENEVER YOU KNOW, THERE’S A PROGRAM THAT PEOP CLEAN ACCESS TO GET SOMETHING. YOU KNOW, USUALLY YOU HAVE THAT EMENT OFEO PPLE THAT TAKE ADVANTAGE OF IT BRYANT JACKSON IS THE LEAD AGE FNTOR THE IR’'S CRIMINAL DIVISION BASED IN CINCINNATI. HE AND HIS COLLEAGUES USE COVID RELIEF. PORTRAYALS AS EVIDENCE. THAT’S THE BEST THING ABOUT WHAT WE D WOE DO CROWNS FROM A HISTORICAL PERSPECTIVE JACKSON WANTS TO PUT ON NOTICE ANYONE WH O SCAMMED THE GOVERNMENT WHICH MEANS SCAMMED Y OOUUT OF PANDEMIC RELIEFON MEY ONCE WE GET INVOLVED. WE’RE COMING TO PUT YOU IN JAIL. WE AREN’T COMING TO Y KOUNOW, SAY DON’T DO THAT AGAIN SINCE THE PANDEMIC BEGAN. THE IRS’S CRIMINAL DIVISION HAS INVESTIGATED AT LEAST 660 COVID RELATED TAX AND MONEY LAUNDERING CASES NATIONWIDE ALMOST TWO BILLION DOLLARS. THE AVERAGE PRISON SENTENCE FOR PEOPLE CONVICTED IS THREE A
Advertisement
COVID-19 relief money snares some Cincinnati business owners in federal fraud investigations

Leading IRS criminal investigator details agency's push to find illegal activity tied to pandemic dollars

Ask a local business owner who got a slice of COVID-19 relief money the right way and you'll often hear how beneficial it's been.But you also can find people accused of taking a much bigger bite of the pie, a pie made with public tax dollars, than they were supposed to."People get this money and instead of paying payroll with it or keeping their business running, they go out and buy luxury cars or luxury assets," said Special Agent in Charge Bryant Jackson with the IRS' Cincinnati Field Office.WLWT investigator Todd Dykes has discovered the feds are prosecuting 17 cases locally, involving people accused of fraudulently taking money set aside to keep businesses afloat.The Department of Justice has highlighted three defendants who call the Cincinnati area home. Toni Wright allegedly swindled the Paycheck Protection Program out of almost $350,000. According to a criminal complaint filed in federal court, Wright used some of that cash for purchases at Louis Vuitton and Victoria's Secret.An agent said Wright also spent thousands at what was then called Jack Casino in downtown Cincinnati - and even bought a 2020 Tesla Model 3 using pandemic relief money.Wright is set to be sentenced October. The FBI said Kelli Prather, a former mayoral candidate in the Queen City, tried to get "more than $600,000 in fraud relief and fraudulently received approximately $19,800." Court documents indicate a plea deal is in the works but has not been finalized. A third defendant, Melissa McGhee, was arrested by police in Sycamore Township. She's accused of getting $186,000 worth of fraudulent relief funds. An FBI agent said she used some money to buy real estate. A jury is scheduled to hear McGhee's case this summer."Whenever, you know, there's a program that people can access, to get something, you know, usually you have that element of people that take advantage of it," Jackson said.Jackson and his colleagues use COVID-19 relief paper trails as evidence."That's the best thing about what we do. We do crimes from a historical perspective," he said.Jackson wants to put on notice anyone who's scammed the government out of pandemic relief money."Once we get involved we're coming to put you in jail. We aren't coming to, you know, say don't do that again," Jackson said.Since the COVID-19 pandemic began, the IRS' criminal division has investigated at least 660 Covid-related tax and money laundering cases nationwide involving almost $2 billion. The average prison sentence for people convicted is 3-and-a-half years.Criminal investigators with the IRS encourage anyone who suspects financial fraud tied to COVID-19 to sound the alarm. One way to do this is by contacting the National Center for Disaster Fraud.

Ask a local business owner who got a slice of COVID-19 relief money the right way and you'll often hear how beneficial it's been.

But you also can find people accused of taking a much bigger bite of the pie, a pie made with public tax dollars, than they were supposed to.

Advertisement

"People get this money and instead of paying payroll with it or keeping their business running, they go out and buy luxury cars or luxury assets," said Special Agent in Charge Bryant Jackson with the IRS' Cincinnati Field Office.

WLWT investigator Todd Dykes has discovered the feds are prosecuting 17 cases locally, involving people accused of fraudulently taking money set aside to keep businesses afloat.

The Department of Justice has highlighted three defendants who call the Cincinnati area home.

Toni Wright allegedly swindled the Paycheck Protection Program out of almost $350,000. According to a criminal complaint filed in federal court, Wright used some of that cash for purchases at Louis Vuitton and Victoria's Secret.

An agent said Wright also spent thousands at what was then called Jack Casino in downtown Cincinnati - and even bought a 2020 Tesla Model 3 using pandemic relief money.

Wright is set to be sentenced October.

The FBI said Kelli Prather, a former mayoral candidate in the Queen City, tried to get "more than $600,000 in fraud relief and fraudulently received approximately $19,800." Court documents indicate a plea deal is in the works but has not been finalized.

A third defendant, Melissa McGhee, was arrested by police in Sycamore Township. She's accused of getting $186,000 worth of fraudulent relief funds. An FBI agent said she used some money to buy real estate. A jury is scheduled to hear McGhee's case this summer.

"Whenever, you know, there's a program that people can access, to get something, you know, usually you have that element of people that take advantage of it," Jackson said.

Jackson and his colleagues use COVID-19 relief paper trails as evidence.

"That's the best thing about what we do. We do crimes from a historical perspective," he said.

Jackson wants to put on notice anyone who's scammed the government out of pandemic relief money.

"Once we get involved we're coming to put you in jail. We aren't coming to, you know, say don't do that again," Jackson said.

Since the COVID-19 pandemic began, the IRS' criminal division has investigated at least 660 Covid-related tax and money laundering cases nationwide involving almost $2 billion. The average prison sentence for people convicted is 3-and-a-half years.

Criminal investigators with the IRS encourage anyone who suspects financial fraud tied to COVID-19 to sound the alarm. One way to do this is by contacting the National Center for Disaster Fraud.