Social Scientist and Harvard business School professor, Arthur Brooks says that people are wired for dissatisfaction and that satisfaction is fleeting. “It’s why, when you achieve conventional, acquisitive success you can never get enough.” Which could explain Roy Layne’s need to commit not one, but two consecutive government fraud schemes. Because once he achieved success stealing money intended to help small businesses during the pandemic he wanted more.
On September 2, 2024, Layne admitted that during the COVID-19 global pandemic he fraudulently applied for U.S. Small Business Administration (SBA) Economic Injury Disaster Loans, SBA Paycheck Protection Program Loans, and pandemic-related tax relief in the names of fictitious business entities, himself, and others. “Others” being stolen identities? Borrowed identities? Either way, Layne filed numerous fraudulent SBA loan applications ultimately receiving $306,700 that he was not entitled to.
If we are wired for dissatisfaction, imagine what a fraudster is wired for. In 2022, Layne filed nearly $7.5 million in false tax returns using the same fabricated information from the COVID-19 loan scheme. These fraudulent claims were processed and Layne was paid approximately $550,000 before the deception was discovered.
On September 2, 2024, he pled guilty to not one but two government benefit schemes that stole from the needy. He now faces many years in prison where he will probably be always dissatisfied. Roy L. Layne is set to be sentenced on February 3, 2025.
Shoutout to the Internal Revenue Service. Layne could have gone on to a third scheme, if they hadn’t been doing their job. Well done.
Today’s Fraud of The Day is based on article “Cochise County man pleads guilty in COVID fraud case” published by Arizona Daily Star on September 2, 2024.
A Cochise County man has pleaded guilty to federal fraud charges stemming from receiving money intended to help small businesses during the pandemic, authorities say. Roy L. Layne, 44, of St. David, applied for pandemic-related loans from the Small Business Administration as well as tax relief from the IRS using his name, those of others and made-up businesses, the U.S. Attorney’s Office in Arizona said in a news release.
Layne received $306,700 in loans and filed false tax return claims with the Internal Revenue Service of $7.4 million. Layne’s plea agreement mandates restitution of $856,692. Layne pleaded guilty Aug. 28 to COVID loan fraud and tax fraud.
