MEMPHIS, Tenn. — A federal grand jury has returned a 53-count indictment charging Renata Walton, 44, and Nicole Jones, 36, both of Olive Branch, Mississippi, with orchestrating multiple schemes to defraud the government of COVID-19 relief funds, the U.S. Attorney’s Office for the Western District of Tennessee announced Thursday.
Walton, owner of R&B Tax Express in Moscow, Tennessee, and Jones, who worked with her, are accused of falsifying personal and business tax returns from 2020 to 2024 to claim COVID-19-related tax credits, including the Employee Retention Credit and the Sick and Family Leave Credit, on behalf of their clients. The indictment alleges the two women secured six-figure refunds for clients who were not entitled to the credits and received large fees from those clients, which they laundered through local banks.
In addition, Walton is accused of filing fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration. Investigators allege the fraudulent claims filed by Walton and Jones totaled over $65 million.
The indictment charges both women with one count of conspiracy to commit wire fraud, 30 counts of wire fraud, 12 counts of money laundering, seven counts of preparing false tax returns, and two counts of failing to file tax returns. Walton faces an additional charge of obstruction of justice.
If convicted, the women face up to 20 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years for each count of money laundering, three years for each count of preparing false tax returns, and one year for each count of failing to file taxes. Walton could face an additional 20 years for obstruction of justice.
Both women were released on $100,000 bonds. The case is being investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney William Carey Bateman III.