Living Large on Public Largesse: Five IRS Employees Busted for COVID Fraud

The Paycheck Protection Program, the Economic Injury Disaster Loan Program, and the CARES Act were supposed to provide relief to people affected by the COVID-19 crisis so they could make ends meet during lockdowns and quarantines. But five IRS employees discovered that they could live a little larger on those funds. The Department of Justice has announced that the five employees have been charged with wire fraud and money laundering. Specifically:

• Brian Saulsberry is facing two counts of wire fraud and two counts of money laundering. Saulsberry filed four fraudulent applications to the EIDL program in an attempt to obtain $501,400 in loans. He did receive $171,400, which he used to purchase a Mercedes. The balance went into a personal investment account.
• Courtney Quinshe Westmoreland was charged with three counts of wire fraud. She submitted fraudulent applications to the PPP and EIDL programs seeking $32,500 in loans. She obtained $11,500. She spent the money on manicures, high-end clothing, and massages. Despite having a full-time federal job, Westmoreland also filed for unemployment with the Tennessee Department of Labor and received $16,050 in benefits.
• Fatina Hewitt was charged with a single count of wire fraud. Hewitt applied for $338,900 through the EIDL program and received $28,900 in loans. That money went to a trip to Vegas and Gucci threads.
• Roderick DeMarco White II was hit with a single count of wire fraud. He applied for $113,311 through the PPL and EIDL programs. He claimed he was seeking the funds for an apparel business. He received $66,666, which he spent on clothes. He also shared Hewitt’s love of Gucci and purchased a designer satchel.
• Tina Humes applied for $133,812 in loans through the PPP and EIDL programs and received $123,612. She spent the loan on jewelry and a trip to Las Vegas.

Kevin Chambers, the director for COVID-19 fraud enforcement, stated, “This matter demonstrates the brazenness with which bad actors have taken advantage of federal programs meant to help those who suffered most from the COVID-19 pandemic. The Justice Department will continue to work hard to root out PPP and EIDL Program fraud, including that committed by government employees.”

All told, more than $400,000 of federal funds meant for COVID relief went into the pockets of these people. That is not including the $16,050 that Westmoreland stole from the state of Tennessee. And what did that money go to? Vegas trips, expensive clothes, accessories, and spa days. And keep in mind, these five are just the ones who were caught. How many more surprises are waiting to jump out of this cake?

While these employees were not accountants or enforcement agents, the IRS is the agency that is allegedly tasked with keeping you honest and keeping tabs on your earnings and your expenses. This is the agency that will want to know why you listed your office printer as an expense on your return and may help itself to all of your records and most of your life if it sees a “red flag.” And we are about to get 87,000 new IRS employees in the not-too-distant future.