A Nevada woman was sentenced to 18 months in prison on July 15 for conspiring to defraud the United States by filing false COVID-19 employment tax credits. The government had recommended a sentence of 40 months’ imprisonment.
“The Fraud Division will not tolerate anyone who steals from public benefits programs designed to support Americans in need,” said Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division, Colin M. McDonald. “If you attempt to defraud these programs, we will come after you with the full force of federal law. We are committed to safeguarding America’s tax dollars and the programs they are meant to support.”
“Today’s sentence, once again, highlights our District’s commitment to the American taxpayer that when people commit fraud, they will face the legal consequences of those criminal acts,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada.
According to court documents and statements made in court, Adonia Stiles, a Las Vegas real estate agent, tax preparer, and clothing store owner, conspired with others to file false tax returns seeking refunds based on the employee retention credit (ERC) and sick and family leave credit. Congress created both credits during the COVID-19 pandemic to aid struggling businesses. Stiles caused her co-conspirator Candies Goode-McCoy to file 11 false employment tax returns for Stiles’s clothing store seeking over $800,000 in refundable credits. She also referred 18 other people for whom Goode-McCoy filed more than 150 false employment tax returns claiming $15 million in fraudulent credits; this resulted in over $7 million paid out by the United States. In exchange for referrals, Stiles received at least $135,000, which she did not report as income on her own returns. In April 2026, Goode-McCoy was sentenced to 54 months in prison.
U.S. District Judge Jennifer A. Dorsey ordered Stiles also serve two years supervised release and pay $7,079,121.48 restitution.
IRS Criminal Investigation and Treasury Inspector General for Tax Administration investigated this case; prosecution was handled by Trial Attorney John C. Gerardi of the Criminal Division’s Tax Section and Assistant U.S. Attorney Richard Anthony Lopez.
On April 7, the Department of Justice announced creation of its Fraud Division focused on investigating those who commit fraud against federal benefit programs as part of President Trump’s Task Force chaired by Vice President J.D. Vance.
The U.S. Attorney for the District of Nevada enforces federal laws across Nevada’s 17 counties through collaboration with local agencies and is part of a federal judicial entity advancing community wellness through law enforcement initiatives, according to its official website.