Two North Mississippi tax preparers are facing serious charges after a federal grand jury in West Tennessee indicted them for defrauding the government of over $65 million in COVID-19 relief funds. The elaborate scheme, uncovered by investigators, spanned from 2020 to 2024, according to the U.S. Attorney's Office.
Renata Walton, 44, and Nicole Jones, 36, both from Olive Branch, Mississippi, are accused of manipulating both personal and business tax returns filed through R&B Tax Express in Moscow, Tennessee, where Walton is the owner and operator. They allegedly claimed credits such as the Employee Retention Credit and the Sick and Family Leave Credit for ineligible clients, resulting in substantial six-figure tax refunds. After the funds were disbursed, the clients would return a large portion of the money to Walton and Jones, who then laundered it through various local banks, further complicating the breach of trust they were entrusted with as tax preparers.
In addition to the tax fraud, Walton is also accused of submitting false loan applications for the Paycheck Protection Program and Economic Injury Disaster Loans through the Small Business Administration. The total amount of more than $65 million in false claims highlights the extent of the fraudulent activities.
The indictment includes multiple charges, such as one count of conspiracy to commit wire fraud, 30 counts of wire fraud, 12 counts of money laundering, as well as charges for filing false tax returns and failing to file their own tax returns for 2022. Additionally, Walton faces a charge of obstruction of justice. The charges represent a serious legal case, and the two, currently released on a $100,000 bond, face an ongoing legal process to determine the outcome of the allegations.
The case is currently being handled by the Internal Revenue Service – Criminal Investigation, with Assistant United States Attorney William Carey Bateman III leading the prosecution, as confirmed by Reagan Fondren, Acting United States Attorney. It is important to note that an indictment does not equate to a conviction, and Walton and Jones are presumed innocent until proven guilty beyond a reasonable doubt in a court of law, in accordance with the fundamental principles of the justice system that protect the rights of the accused.
