Jason M. Frierson U.S. Attorney | U.S. Attorney for the District of Nevada
A Nevada woman has admitted to conspiring to defraud the United States by submitting false claims for COVID-19-related employment tax credits. Candies Goode-McCoy of Las Vegas pleaded guilty in court, acknowledging her involvement in filing fraudulent tax returns seeking refunds through the employee retention credit (ERC) and paid sick and family leave credit.
Court documents reveal that from June 2022 to September 2023, McCoy filed around 1,227 false tax returns for her businesses and others. These claims aimed to secure over $98 million in refunds, with the IRS disbursing approximately $33 million. McCoy personally gained over $1.3 million from these fraudulent activities and received about $800,000 from individuals on whose behalf she filed false returns. She was aware of the fraudulent nature of these filings, knowing neither she nor her clients were eligible for such credits.
The proceeds were used for personal expenses, including luxury cars, gambling at casinos, vacations, and other high-end goods.
In response to the economic impact of COVID-19, Congress had authorized the ERC to help small businesses reduce their employment taxes owed to the IRS. Additionally, a credit against employment taxes was available to reimburse businesses for wages paid during employees' sick or family leave due to COVID-19.
McCoy is set for sentencing on February 23, 2026. She could face up to 10 years in prison along with supervised release, restitution, and monetary penalties. The final sentence will be determined by a federal district court judge after reviewing U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Sue Fahami for the District of Nevada.
The case is being investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Richard Anthony Lopez are prosecuting.
