Former IRS agent in California charged in scheme that stole $3 million in COVID relief funds
The CA man allegedly submitted phony business loan applications and received money from the Payroll Protection Program
{{#rendered}} {{/rendered}}A former Internal Revenue Service agent and Oakland tax enforcement officer has been charged in connection with a scheme that stole $3 million in COVID-19 pandemic relief money, federal prosecutors said Wednesday.
Frank Mosley, 58, is one of six people accused of obtaining money from the federal Payroll Protection Program in 2021 and 2022 by submitting phony loan applications for funds that were intended to help keep small businesses afloat, the U.S. attorney's office said in a statement.
Mosley and the others submitted applications for four companies, falsely claiming they had up to 49 employees each and at least $150,000 in monthly payroll when in reality they "were little more than shell companies, with no payroll expenses," prosecutors said.
{{#rendered}} {{/rendered}}IRS SAYS AMERICANS ARE GETTING $20 BILLION LESS IN TAX REFUNDS THIS YEAR
Frank Mosley, a former IRS agent in California, was charged with aiding or advising a false tax return and conspiracy to commit bank fraud. (Fox News)
"The defendants allegedly did not use the funds for any legitimate business expenses, such as to pay employees. Rather, they used the funds for significant personal expenses, personal credit cards, personal investments, and distributions to their family members," the statement said.
Mosley currently is a tax enforcement officer for the city of Oakland, prosecutors said.
{{#rendered}} {{/rendered}}There was no immediate response to an email sent to the city asking about his work status.
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Mosley is charged with conspiracy to commit bank fraud and aiding or advising a false tax return. If convicted, he could face up to 33 years in federal prison.
{{#rendered}} {{/rendered}}It wasn't immediately clear whether he had an attorney to comment on his behalf. The U.S. attorney's office said it had no public information about his counsel.