A St. Louis woman faces charges for allegedly obtaining $177,000 in pandemic-related tax refunds through fraudulent means. Ayana J. Brown, 33, was indicted on February 20 on two felony counts of theft of government property. She surrendered to authorities and pleaded not guilty in the U.S. District Court in St. Louis.
The indictment claims that Brown filed two false quarterly employment tax returns with the IRS for Yaya Flowtiques LLC on December 22, 2022. It alleges that she falsely reported having five employees and paying wages totaling approximately $177,321 for the first quarter of 2021 and $145,098 for the second quarter. However, it states that Yaya Flowtiques had no employees during this period. The fraudulent filings resulted in Brown receiving two U.S. Treasury checks amounting to $177,000 under the Employee Retention Tax Credit (ERC) program.
The ERC was intended to incentivize businesses to retain employees during the COVID-19 pandemic by offering tax credits to those affected by shutdowns or significant revenue declines.
Each charge of theft of government property carries a potential penalty of up to 10 years in prison, a fine of $250,000, or both.
It is important to note that charges presented in an indictment are accusations and do not prove guilt. Defendants are presumed innocent until proven otherwise.
The investigation was conducted by the Treasury Inspector General for Tax Administration (TIGTA), with Assistant U.S. Attorney Jonathan Clow handling prosecution duties.
