COVID Relief Fraud: A Growing Trend and What It Means for Taxpayers
A concerning pattern is emerging: the misuse of COVID-19 relief funds. Recent investigations reveal organized schemes designed to exploit programs like the Paycheck Protection Program (PPP).
Mass. Company Accused of Stealing Millions in COVID Relief Funds
Updated: 7:29 PM EST Feb 9, 2026
On the Go Tax Services, a tax preparation business operating in Massachusetts and Florida, is facing federal charges for allegedly stealing millions of dollars in taxpayer-funded relief. Prosecutors state that Lorne Johnson and three co-defendants submitted fraudulent PPP loan applications.
The scheme involved recruiting borrowers, preparing false paperwork, and inflating incomes to fraudulently qualify for PPP loans. Authorities believe the group took as much as 30% of each loan obtained.
The IRS suspects that many of the borrowers knowingly participated in the scam.
The Scope of the Problem
This case isn’t isolated. A woman in Jenks, Oklahoma, Lauren Michelle Owen, was recently sentenced to 27 months in prison and ordered to repay over $1.2 million in restitution for similar offenses (U.S. Department of Justice). A novel state report indicates that hundreds of public employees in Illinois improperly obtained federal pandemic relief funds (MyEyewitnessNews).
How the Schemes Work
These schemes typically involve exploiting the rapid disbursement of funds and limited oversight during the pandemic. Fraudulent actors often target small businesses or individuals willing to participate in exchange for a cut of the loan proceeds. False documentation, inflated revenue claims, and shell companies are common tactics.
The Paycheck Protection Program (PPP)
The PPP, established under the CARES Act (Congress.gov), was designed to provide financial assistance to businesses struggling due to the economic impact of COVID-19. While the program provided crucial support, its urgency and scale created vulnerabilities that fraudsters exploited.
What This Means for Taxpayers
The theft of COVID relief funds ultimately burdens taxpayers. Recovering these funds is a complex and ongoing process. Increased scrutiny and stricter enforcement are crucial to prevent future fraud.
FAQ
- What is the Paycheck Protection Program? A program created to help small businesses during the COVID-19 pandemic.
- Are people being prosecuted for PPP fraud? Yes, individuals and companies are facing federal charges for fraudulently obtaining PPP loans.
- How can I report suspected fraud? Contact the IRS or the Department of Justice.
All four defendants in the Massachusetts case have been arrested and charged with conspiracy to commit wire fraud. Authorities are continuing their investigation.
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