St. David Man Pleads Guilty to Wire Fraud and Filing a False Claim Amid COVID-19 Relief Fraud

TUCSON, Ariz. — Roy L. Layne, 44, of St. David, Arizona, pleaded guilty on July 23, 2024, to two counts of Wire Fraud and one count of Filing a False Claim. Sentencing is set for February 3, 2025, before U.S. District Judge John C. Hinderaker.

Layne admitted to fraudulently applying for U.S. Small Business Administration (SBA) Economic Injury Disaster Loans, SBA Paycheck Protection Program (PPP) Loans, and pandemic-related tax relief during the COVID-19 global pandemic. He filed these fraudulent applications in the names of fictitious businesses, himself, and others. Layne ultimately received $306,700 in SBA loans and $549,992 in false tax refunds from the Internal Revenue Service (IRS), totaling over $856,692.91 in funds he was not entitled to.

As part of his plea agreement, Layne has agreed to pay restitution to the SBA and the U.S. Treasury for the full amount he wrongfully obtained.

Wire Fraud carries a maximum penalty of 30 years in prison, a fine of $1 million, and up to five years of supervised release. Filing a False Claim carries a maximum penalty of five years in prison, a $250,000 fine, and up to three years of supervised release.

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Mary Sue Feldmeier, from the District of Arizona in Tucson, along with Department of Justice Trial Attorney Matthew R. Hoffman from the Tax Division in Washington, D.C., are prosecuting the case.

This case underscores the government's commitment to pursuing those who exploit relief programs designed to assist struggling Americans during the COVID-19 pandemic.

Coronavirus News on ScreenPhoto byMarkus Spiske