A St. Louis woman, Ayana J. Brown, 34, has pleaded guilty to swindling the government out of $177,000 in pandemic relief funds, according to a federal announcement. Brown's scheme involved filing fraudulent tax claims through her company, Yaya Flowtiques LLC, taking advantage of tax credits intended to aid businesses in keeping their workforce employed during the height of the COVID-19 crisis.
On Thursday, in the U.S. District Court of St. Louis, Brown admitted to submitting falsified quarterly employment tax returns that wrongfully represented her company's payroll expenses and employee count. Her company, which was reported as having little to no operations, was falsely claimed to have paid significant wages to non-existent employees to obtain Employee Retention Tax Credits. These benefits were essentially for businesses struggling due to the pandemic, designed to bolster the economy by preserving jobs, as detailed by the U.S. Attorney's Office.
Brown acknowledged in court that Yaya Flowtiques LLC had neither employees nor payroll during the time she claimed the tax credits. Her subterfuge successfully duped the IRS into issuing two checks totaling nearly $180,000, which she then splurged on personal expenses, including food and shopping. The fraud was uncovered by the Treasury Inspector General for Tax Administration (TIGTA), leading to her prosecution and guilty plea.
Details obtained by the U.S. Attorney's Office indicate that Brown deposited the fraudulent Treasury checks, then liquidated them through multiple large cash withdrawals from her bank account. As she now faces up to 10 years in prison for each felony count of theft of government property—along with potential fines—Brown's sentencing has been scheduled for May 6.
The Assistant U.S. Attorney, Jonathan Clow, is handling the case against Brown.
