In a case that brings to light abuse of pandemic relief programs, five former IRS employees were sentenced for their roles in exploiting COVID-19 aid. The U.S. Attorney's Office, Western District of Tennessee reported that these individuals collectively sought over $1 million from funds intended to support struggling businesses during the pandemic.
Brian Saulsberry, a former IRS Program Evaluation and Risk Analyst, was among those convicted after pleading guilty to money laundering. Saulsberry admitted to funneling $171,400 from the Economic Injury Disaster Loan (EIDL) program into his personal accounts – money that was originally allocated to assist small businesses weathering the financial storm brought about by COVID-19, according to court documents.
Other employees involved in the scheme, Courtney Quinshe Westmoreland, Fatina Hewitt, Roderick DeMarco White II, and Tina Humes, were found to have used fraudulent loan funds for various personal expenses including investing, purchasing vehicles, luxury goods, and travel with trips to places like Las Vegas. This misuse of funds subverted the intentions of the CARES Act, designed to alleviate the economic distress experienced by countless individuals and businesses.
In December 2023, Saulsberry pled guilty and was sentenced last wednesday to 18 months in prison followed by two years of supervised release. He is also required to forfeit the $171,400 gained from the scheme. "There is no parole in the federal system," as highlighted by the Justice Department's announcement.
The COVID-19 Fraud Enforcement Task Force, established by the Attorney General, played a pivotal role in bringing such offenders to justice and seeks to prevent such misuse offunds in the future. The Task Force operates in collaboration with various agencies to enhance the detection, investigation, and prosecution of fraudulent activities related to pandemic relief. Anyone with knowledge of COVID-19 fraud can report it through the Department of Justice’s National Center for Disaster Fraud hotline or by filling out the NCDF Web Complaint Form.
