Jason M. Frierson U.S. Attorney | U.S. Attorney for the District of Nevada
An Illinois resident, Lakeibia Fannin, has pleaded guilty to conspiring to defraud the United States by submitting false claims for COVID-19-related employment tax credits. The plea was entered in Las Vegas federal court.
Court records indicate that from June 2022 through November 2023, Fannin collaborated with others in Nevada and elsewhere to file fraudulent tax returns seeking refunds based on the employee retention credit (ERC) and paid sick and family leave credit. Authorities stated that neither Fannin nor her businesses were eligible for these credits. The funds obtained were used for personal expenses such as vacations, a cruise, jewelry, designer clothes, and a car.
Prosecutors said Fannin requested over $3.5 million in total and received more than $1.4 million in fraudulent refunds.
The ERC was established by Congress during the COVID-19 pandemic to help small businesses reduce their employment tax burden. Additionally, Congress authorized a credit against employment taxes to reimburse businesses for wages paid to employees on sick or family leave due to COVID-19.
Fannin is scheduled for sentencing on March 19, 2026. She faces 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 considering the U.S. Sentencing Guidelines and other legal factors. As part of her plea agreement, Fannin has agreed to pay more than $1.4 million in restitution to the IRS.
“First Assistant United States Attorney Sigal Chattah for the District of Nevada and Acting Special Agent in Charge Jarom Gregory for the IRS Criminal Investigation's Phoenix Field Office made the announcement.”
IRS Criminal Investigations and the Treasury Inspector General for Tax Administration are conducting the investigation.
The prosecution is being handled by Trial Attorney John C. Gerardi of the Criminal Division and Assistant U.S. Attorney Richard Anthony Lopez of the District of Nevada.
