A Peoria man who tried to turn the pandemic into his own personal stimulus check has now admitted it in federal court. Prosecutors say 54-year-old Leslie Victor Gentry filed a series of bogus payroll tax returns to squeeze roughly $1.8 million in COVID-era refunds out of the government. In his plea, Gentry conceded he submitted false Form 941 filings that listed employees and wages that did not exist in order to claim pandemic tax credits he was never entitled to. Court papers say the scheme ultimately pulled in about $1.8 million, and he is set to be sentenced later this summer.
What prosecutors say
According to a plea agreement announced by federal authorities, Gentry admitted preparing and submitting 14 fake Form 941 payroll returns for tax years 2020 and 2021 on behalf of two businesses that were not actually operating, while claiming made-up wages and staff, according to Arizona's Family. Court filings say the companies had no employees at all, yet the paperwork generated more than $1.8 million in COVID-related payroll tax credits that prosecutors say Gentry pocketed himself.
Charges and penalties
Gentry pleaded guilty on April 8 in Phoenix to filing false claims for refund and is scheduled to be sentenced on July 13, 2026, according to KTAR News. Federal prosecutors say the charge carries a maximum sentence of five years in prison, a $250,000 fine, and an order to pay restitution to the IRS. Under the plea deal, Gentry must repay the improperly claimed credits, while the judge will decide at the July hearing how much, if any, prison time he will serve.
Part of a wider federal crackdown
Federal officials say the case is one slice of a much larger crackdown on pandemic-era fraud involving Coronavirus Response Credits and other relief programs. In one high profile example, the FBI and IRS Criminal Investigation charged four people in a sweeping scheme that sought roughly $93 million in improper COVID refunds, highlighting how aggressive some scammers got and how seriously investigators are treating these cases, per the FBI. Many of these prosecutions end with hefty restitution orders on top of potential prison time.
How Arizonans can protect themselves
State officials say the Gentry case should serve as a flashing warning sign for taxpayers to vet anyone touching their returns and to be suspicious of surprise offers of “free money” from the government. Arizona Attorney General Kris Mayes and the Better Business Bureau recently issued a consumer PSA warning that “Scammers want you to act fast before a supposed relief option disappears,” and urging residents to double check any supposed IRS outreach at irs.gov and confirm preparer credentials, per the Arizona Attorney General’s Office. Anyone who believes they have been targeted can report suspected tax fraud to the state Attorney General or directly to the IRS.
