U.S. Attorney Ronald C. Gathe, Jr. | U.S. Department of Justice
United States Attorney Ronald C. Gathe, Jr., has announced charges against Damian R. Raby, 41, from Gonzales, Louisiana. Raby faces accusations of conspiracy to launder money and obstructing the administration of internal revenue laws. These charges are related to a scheme allegedly designed to defraud a COVID-19 economic relief program.
According to the Bill of Information, between August 2022 and April 2023, Raby is accused of orchestrating a plan to defraud the United States via the Internal Revenue Service (IRS). He allegedly prepared and filed tax forms fraudulently claiming Employee Retention Credit (ERC) tax credits for numerous businesses purportedly in the Baton Rouge area. The businesses either did not exist during the COVID-19 pandemic or lacked legitimate business activity before it.
The ERC program was established under the Coronavirus Aid, Relief, and Economic Security Act ("CARES" Act) as a tax credit intended to help businesses retain employees during the pandemic. As part of his alleged scheme, Raby reportedly requested Employer Identification Numbers (EINs) for these fraudulent businesses from the IRS, opened bank accounts in their names, and filed tax forms falsely representing employee numbers and payroll amounts. He claimed that these businesses were entitled to large tax credits.
The Bill claims that Raby's fraudulent applications led to more than 30 checks being issued by the IRS totaling approximately $4.4 million. Once proceeds were received from this scheme, Raby and his associates allegedly conducted further financial transactions among various accounts he controlled in an effort to conceal and spend these funds. The Bill alleges that these proceeds were used for payments on luxury vehicles, his personal residence mortgage, and other large purchases.
Additionally, when aware of an investigation into his conduct, Raby allegedly obstructed it by making false statements to an IRS agent and sending fictitious documents while encouraging a witness to provide false information.
This case was investigated by several agencies including Internal Revenue Service - Criminal Investigation and United States Treasury Inspector General for Tax Administration with support from East Baton Rouge Parish Sheriff's Office. Assistant United States Attorneys Alan A. Stevens and J. Brad Casey are prosecuting this matter.
It is important to note that a Bill of Information is merely an accusation; thus far no guilt has been adjudicated regarding Mr. Raby who remains presumed innocent until proven otherwise in court.
