A Las Vegas resident entered a guilty plea, acknowledging her part in a scheme to defraud the government by filing false claims for COVID-19 employment tax credits. Candies Goode-McCoy admitted to conspiring in the submission of approximately 1,227 fraudulent tax returns, in an attempt to defraud the Internal Revenue Service of nearly $100 million.
The details of the case, sourced from the U.S. Attorney's Office for the District of Nevada, describe that from June 2022 to September 2023, McCoy's actions led to the actual payout of about $33 million by the IRS. The ploy included fraudulently claimed employee retention credit (ERC) and paid sick and family leave credit. Her share exceeded $1.3 million in refunds, while she pocketed around $800,000 from filing on behalf of others. The funds were not put into savings, but rather funneled into high-end vehicles, gambling activities, lavish vacations, and various luxury items.
This program was initially set up by Congress to help small businesses struggling during the pandemic, offering relief in the form of credits against owed employment taxes. It was designed to compensate businesses for the wages of workers unable to work due to COVID-19-related sick or family leave. Unfortunately, Goode-McCoy's exploitation of these relief measures has led to her facing a serious sentence.
Set to be sentenced on February 23, 2026, McCoy could face up to 10 years in prison, in addition to supervised release, restitution, and monetary penalties. A federal judge will determine the exact parameters of her punishment, taking into account the U.S. Sentencing Guidelines and other legal benchmarks. The announcement of her guilty plea was made by Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Sue Fahami, Acting U.S. Attorney for the District of Nevada, as outlined in the press release.
The investigation into McCoy's fraudulent dealings were conducted by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada are handling the prosecution of the case.
