Bay Area/ Oakland/ Crime & Emergencies
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Published on May 17, 2024
Former IRS Officer and Brother Sentenced in Multi-Million-Dollar COVID-19 Relief FraudSource: Google Street View

Six individuals, including a former IRS revenue officer and his brother, have been sentenced to prison after being convicted of orchestrating a multi-million-dollar fraud involving COVID-19 pandemic relief funds. According to the U.S. Attorney's Office, the group fraudulently obtained over $3 million from the government's Paycheck Protection Program (PPP), exploiting the financial aid meant to support struggling businesses during the pandemic.

The fraudsters' deception was laid bare as they submitted false documents to secure loans, with bogus claims of numerous employees and significant payroll expenses when in reality, they were shell companies with no legitimate business activities, their plea agreements revealed, the Mosley brothers Frank, 58, and Reginald, 60, who were sentenced to 30 months in prison each, copped to submitting fraudulent loan applications through a company they controlled and pulling in over $1 million in ill-gotten PPP funds, furthermore participating in concocting falsified tax returns to conceal their crimes.

U.S. Attorney Ismail J. Ramsey lamented the gross misuse of critical aid, stating through the U.S. Attorney's Office, "At the height of a global pandemic wreaking havoc on American businesses and families, these defendants fraudulently obtained millions of dollars in aid money intended to help those who desperately needed it and used that money to enrich themselves." The group, including Marcus Wilborn, Aaron Boren, and Scott Conway, each received sentences ranging from 12 to 18 months for their roles in the fraudulent scheme. Kenya Ellis, the sixth defendant, received a 12-month sentence.

The former IRS revenue officer's knowledge of the tax system was weaponized to facilitate the scheme, with IRS-CI Acting Special Agent in Charge Michael Mosley condemning the betrayal, saying via the U.S. Attorney's Office, Northern District of California, "Frank and Reginald Mosley, along with their co-conspirators, ran an abhorrent scheme that fraudulently obtained over $3 million of funds designed to help struggling businesses in the wake of a global pandemic. Even worse, Frank Mosley, a former IRS revenue agent, exploited his expertise to help cover up the scheme," underscoring the egregious breach of trust these crimes represented.

In addition to prison time, United States District Judge Araceli Martínez-Olguín ordered each defendant to three years of supervised release upon completing their sentences and set a later date for determining the restitution they owe. The sentences and rising consequences are a stark reminder highlighted by SBA OIG's Western Region Special Agent in Charge Weston King, ensuring those who exploit government programs will face accountability for their actions that trample on the needs of the American people, bringing justice for taxpayer dollars during times of crisis.