A California man was arrested after a grand jury in Harrisburg, Pennsylvania, returned an indictment charging him with conspiracy, mail fraud, and money laundering, according to a July 21 announcement by U.S. Attorney Brian D. Miller.
According to the indictment, Christopher Slater participated in a multi-state scheme to defraud the United States of more than $52.7 million by filing hundreds of false tax returns claiming Paid Sick and Family Leave Credit (SFLC) and Employee Retention Credit (ERC) credits. The SFLC was designed to reimburse businesses for wages paid during COVID-19-related leave, while the ERC aimed to incentivize businesses to retain employees during the pandemic. Slater allegedly recruited business owners and used their information to file at least 280 false tax returns for 35 businesses, resulting in over $32.2 million being paid out by the Internal Revenue Service.
The indictment also charges Mark Keagel of York, Pennsylvania, with money laundering, conspiracy, and theft of government property. Keagel is accused of providing information from two defunct businesses he owned to one of Slater’s co-conspirators; fraudulent tax returns were then filed on behalf of these companies. The IRS mailed approximately $3.6 million in Treasury checks related to these filings to Keagel, who allegedly laundered those proceeds.
“This indictment alleges that Christopher Slater orchestrated a multi-state fraud scheme that sought more than $50 million in taxpayer-funded pandemic relief funds,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “This brazen fraud is unacceptable and will not be tolerated. The Fraud Division will continue to hold anyone accountable who steals from American taxpayers and abuses programs intended to provide relief during a national crisis.”
“This indictment shows our Office’s longstanding commitment to prosecuting fraudsters and protecting our tax dollars,” said U.S. Attorney Brian D. Miller. “This Office will continue to work with our law enforcement partners to stop these schemes and protect taxpayers’ hard-earned money.” Yury Kruty, Special Agent in Charge at IRS-Criminal Investigation Philadelphia Field Office, said, “IRS-Criminal Investigation is committed to protecting the integrity of our financial system by disrupting complex financial crimes and pursuing those responsible.”
If convicted on all counts, Slater faces up to 20 years in prison for each mail fraud charge; both defendants face up to 10 years per count for money laundering-related charges; Keagel faces up to ten years per count for theft of government property.
The case is being investigated by IRS Criminal Investigation with prosecution led by Assistant Deputy Chief Ezra Spiro from the Criminal Division’s Tax Section and Assistant U.S. Attorney Ravi Romel Sharma from the Middle District of Pennsylvania.
An indictment is an allegation only; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
On April 7, the Department of Justice announced creation of its National Fraud Enforcement Division focused on investigating those committing fraud against federal benefit programs as part of President Trump’s Task Force chaired by Vice President J.D. Vance, according to the official website. The U.S. Attorney for the Middle District of Pennsylvania serves about 3.2 million residents across central Pennsylvania through offices including Harrisburg while handling federal prosecutions, civil litigation for government agencies, victim assistance programs as well as community safety initiatives.