A Wheatland man has been handed a near three-year prison sentence for attempting to defraud the United States through false COVID-19 relief claims. In a case brought to public attention by the U.S. Attorney's Office, 44-year-old Jason Toland was convicted of trying to obtain over $13.4 million using forged tax returns and loan applications, according to court documents released by the Department of Justice.
Evidence showed that Toland, who had no legitimate businesses or employees, used shell companies to exploit pandemic tax credits, including the Employee Retention Credit and the COVID Sick and Family Leave Credit, submitting claims totaling over $11 million. Through his fraudulent scheme, Toland successfully pocketed more than $1.95 million for personal use. The sentencing court ordered him to repay $2,078,462 to the Internal Revenue Service (IRS) and the Small Business Administration (SBA).
"The COVID-19 Fraud Strike Force continues to pursue pandemic fraud, including the abuse of tax credits for personal gain," U.S. Attorney Phillip A. Talbert stated, as reported by the Department of Justice. He highlighted the commitment to identifying and prosecuting those targeting credits intended for legitimately struggling businesses during the pandemic.
IRS-Criminal Investigation's Oakland Field Office Acting Special Agent in Charge Michael Mosley condemned Toland's actions, stating, "Mr. Toland’s fraudulent and nefarious scheming took aim at funds designated to help both small businesses and American citizens in the midst of a global pandemic." He emphasized IRS-CI's commitment to tackling financial crime, proclaiming, "We are the experts in financial investigations, and we build cases that result in justice," as noted by the Department of Justice.
This case was handled through a collaborative effort between multiple agencies, including the SBA Office of Inspector General and the Federal Bureau of Investigation. It is part of a larger initiative by the Department of Justice's California COVID-19 Fraud Enforcement Strike Force, which aims to tackle large-scale pandemic relief fraud cases that have tried to exploit the United States during an unprecedented crisis.
