The U.S. Attorney’s Office for the Middle District of Louisiana has made an announcement today. Damian R. Raby, a 41-year-old resident of Gonzales, has been charged with conspiracy to launder money and obstructing the administration of internal revenue laws. This comes in relation to a multimillion-dollar scheme aimed at defrauding a COVID-19 relief program.
Between August 2022 and April 2023, Raby allegedly orchestrated a scheme to defraud the United States through the Internal Revenue Service (IRS). The scheme involved filing fraudulent tax forms to claim Employee Retention Credit tax credits, as stated by the department.
According to the department, the businesses in the Baton Rouge area that either did not exist during the COVID-19 pandemic or had no legitimate business activity had filed the credits.
The U.S. attorney’s office stated that the Employee Retention Credit program, which is a part of the CARES Act, was designed to assist businesses in keeping their employees amid the pandemic.
Raby participated in the scheme by acquiring Employer Identification Numbers, establishing bank accounts for fictitious businesses, and filing fraudulent tax forms that misrepresented payroll figures and employee counts, according to the department.
He is accused of submitting fake applications for numerous businesses, leading to the IRS issuing over 30 checks amounting to approximately $4.4 million.
Raby and his associates were found to have transferred the funds through various accounts under their control in order to hide, mask, and utilize the money.
He reportedly used the funds to make substantial payments on luxury vehicles, pay off his mortgage, and make other significant purchases.
The department stated that Raby obstructed the inquiry by making false statements to an IRS agent, submitting fictitious documents, and encouraging a witness to provide false information after becoming aware of the pending investigation.
