Last of 4 Columbus defendants in $17 million pandemic fraud case pleads guilty
The last of four Columbus defendants in a $17 million pandemic fraud scheme has pleaded guilty, the U.S. Department of Justice announced Thursday.
Christopher Upshaw, aka “Troub,” 26, of Columbus, pleaded guilty Wednesday to one count of mail fraud, the DOJ said.
The other three co-defendants —Johnathon Swift, aka “JB,” aka “John Boy,” 34; Dontavis Williams, aka “Turk,” 41; and Donterious Sparks, 37, all of Columbus — pleaded guilty to one count of mail fraud Jan. 21, according to the DOJ.
The defendants face a maximum of 30 years in prison, to be followed by three years of supervised release and a $1 million fine, the DOJ said. Parole isn’t an option in the federal system.
U.S. District Judge Clay Land is presiding over this case. No sentencing dates have been announced.
“The defendants devised a scheme to illegally obtain millions of dollars in COVID tax credits intended for honest business owners working to sustain their companies and employees during the pandemic, not for fraudsters seeking luxury cars and other indulgences,” U.S. Attorney William Keyes said in the news release.
“This scheme attempted to steal nearly $17.5 million from programs meant to help struggling workers and small businesses survive the pandemic— not bankroll luxury purchases and personal gain,” Pete Ellis, acting special agent in charge of FBI Atlanta, said in the news release.
Details about this pandemic fraud scheme
Court documents and statements made in court show Upshaw registered DOPE! Apparel LLC with the Georgia Secretary of State’s office in June 2022 and filed five falsified returns in April 2023, using the business to fraudulently claim COVID-related tax credits, the DOJ said.
The IRS issued five refunds to Upshaw’s business totaling $411,112.21 as a result of the falsified returns, according to the news release.
“All three co-defendants used LLCs registered to their names to file false tax returns claiming COVID tax credits they were not entitled to,” the news release says.
The four co-defendants received 16 checks totaling over $1.2 million, which were deposited into bank accounts controlled by the defendants or cashed, the DOJ said.
The defendants also recruited others into the scheme and electronically filed returns on behalf of others in exchange for a percentage of the refund, according to the news release.
The combined attempted and actual loss to federal taxpayers was $17,489,749.80, the DOJ said.