IRS employees charged with defrauding pandemic relief money
Five Internal Revenue Service employees from the Memphis area have been charged after officials say they attempted to take over $1 million in loans from a pandemic stimulus package.
Department of Justice officials say Brian Saulsberry, Courtney Quinshe Westmoreland, Fatina Hewitt, Roderick DeMarco White II, and Tina Humes filed fraudulent loan applications through the CARES Act and used the money for cars, luxury goods and personal vacations — which included trips to Las Vegas.
"These individuals — acting out of pure greed — abused their positions by taking government funds meant for citizens and businesses who desperately needed it," said U.S. Attorney for the Western District of Tennessee Kevin G. Ritz.
Fraud investigators have prosecuted over 150 people in more than 95 criminal cases since the CARES Act went into effect. Over $75 million in various assets, including cash, properties, and luxury items, have been seized.
The 46-year-old Saulsberry, who is from Memphis, is charged with two counts of wire fraud and two counts of money laundering. He worked for the IRS as a program evaluation and risk analyst.
"Saulsberry submitted four fraudulent...applications, seeking at least $501,400...and obtaining $171,400 in loan funds," a press release from the DOJ read. "Saulsberry allegedly spent a portion of the funds on a Mercedes-Benz and deposited additional funds into a personal investment account."
Westmoreland is a 38-year-old from Cordova facing two counts of wire fraud. She worked for the IRS as a contact representative in the wage and investment service centers department.
"Westmoreland submitted multiple fraudulent...applications on behalf of a purported apparel business, for which she sought at least $32,500 in loans and obtained $11,500 in loan funds," the press release said. "Westmoreland allegedly used these funds for personal services, including manicures and massages, and to purchase luxury clothing."
Westmoreland is also alleged to have fraudulently submitted and received unemployment benefits from the Tennessee Department of Labor, claiming she was not employed by the federal government although working for the IRS. Court documents say she received $16,050 in unemployment benefits.
Hewitt is a 35-year-old from Olive Branch, Mississippi, and is charged with one count of wire fraud. She worked for the IRS as a management and program assistant. She filed applications seeking almost $340,000 for a fake fashion business. She ended up receiving $28,900 and allegedly spent them on Gucci clothing and a trip to Las Vegas.
Hewitt entered a guilty plea Tuesday to the single wire fraud count.
White II is a 27-year-old, also from Memphis, was charged with a single count of wire fraud. He worked for the IRS as a contract representative for the wage and investment service centers department. White is accused of seeking $113,311 in loans and receiving about half of that. He allegedly spent some of the $66,666 in loans he received on personal items, such as a Gucci satchel.
White pleaded guilty in late August to one count of wire fraud.
Humes is a 56-year-old lead management program assistant for the IRS' human capital office from Memphis. She was accused of obtaining $123,612 in loans and spending it on jewelry and trips to Las Vegas. She was the first one of the five to enter a guilty plea in late July.
"The IRS employees charged in these cases allegedly abused the trust placed in them by the public," said Assistant Attorney General Kenneth A. Polite, Jr. of the DOJ's criminal division. "The criminal division is committed to safeguarding that public trust and protecting pandemic relief programs for the American people."
Lucas Finton is a news reporter with The Commercial Appeal. He can be reached at Lucas.Finton@commercialappeal.com and followed on Twitter @LucasFinton.
This article originally appeared on Memphis Commercial Appeal: IRS employees face up to 40 years in prison for defrauding CARES Act
