Lamar woman sentenced in tax fraud scheme

A Lamar woman was sentenced Tuesday, June 30 to more than four years in federal prison and ordered to pay over $1.4 million in restitution for orchestrating an Employee Retention Credit tax fraud scheme, federal prosecutors announced.

Senior U.S. District Judge Sharion Aycock sentenced Patricia Jones, age 44, to 50 months in prison followed by three years of supervised release. Jones, who previously pleaded guilty to the charges, must pay $1,422,022 in restitution.

According to court documents, Jones submitted fraudulent IRS forms to obtain funds from the Employee Retention Credit (ERC), a federal program established to encourage businesses to keep employees on their payrolls during the COVID-19 pandemic.

Prosecutors said Jones submitted the false forms on behalf of herself and others. The scheme attempted to claim more than $3.8 million in fraudulent refunds, ultimately resulting in the IRS paying out more than $1.4 million to Jones and her co-conspirators. “The Department of

Justice announced the creation of the National Fraud Enforcement Division on April 7,” U.S. Attorney Scott F. Leary said in a statement.

“Its core mission is to zealously investigate and prosecute those who fraudulently misuse taxpayer dollars.”

Leary credited federal investigators and prosecutors for untangling the complex case.

Demetrius Hardeman, special agent in charge of the IRS Criminal Investigation’s Atlanta Field Office, said the sentence underscores the agency’s commitment to protecting the nation’s tax system.

“Individuals who cheat the American taxpayer undermine public trust and siphon resources intended to support our communities,” Hardeman said. “IRS Criminal Investigation special agents are highly trained financial investigators, skilled at following the money, uncovering complex fraud schemes, and ensuring that individuals who attempt to cheat the American taxpayer are held fully accountable.”

The case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Clay Dabbs.

The enforcement action is part of a broader federal crackdown coordinated by the National Fraud Enforcement Division, which supports the White House Task Force to Eliminate Fraud, a federal initiative led by Vice President J.D. Vance to target waste and abuse in government benefit programs.