To the Internal Revenue Service, all income earned, no matter what the source (ironically both legal and illegal), has the potential of becoming involved in crimes which fall within the investigative jurisdiction of the IRS Criminal Investigation. IRS Special Agents are sworn law enforcement officers who are trained to “follow the money.” Because of the expertise required to conduct these complex financial investigations, IRS Special Agents are considered the premier financial investigators for the Federal government. The best of the best. At that level, one would have thought that Frank Mosley would have done better with his COVID-19 Loan scheme. Turns out being a premier investigator does not make for a premier fraudster.
Frank Mosley was a tax enforcement officer and a former IRS revenue officer.
In August 2020, Frank and his brother, Reginald, filed a fraudulent Paycheck Protection Program loan application on behalf of Forward Thinking Investors Inc., a company they controlled, by inflating employee numbers and payroll costs. A cookie cutter COVID-19 scheme that garnered over $1 million in fraudulent relief funds for the Mosely brothers.
While luxuriating in their fraudulently gained windfall, the Mosley brothers contacted some buddies, who owned their own companies, to submit additional fraudulent loan applications. In aiding their friends in filing these fraudulent PPP applications, the Mosley brothers drafted a contract agreement for the co-conspirators to pay the brothers 15% of whatever financial relief they received. Good idea to put fraudulent dealings on paper. Don’t want to lose friends over money.
The Mosley brothers fraudulently obtained over $3 million from their own loan funds and friends. May 17, 2024, the Mosley brothers were each sentenced to thirty months in prison.
Excellent job by the COVID-19 Fraud Enforcement Task Force.
Today’s Fraud of The Day is based on article “Former IRS officer and his brother sentenced for scamming over $3M in loan relief funds” published by KRON4 News on May 17, 2024.
A former IRS officer, Frank Mosley, 58, of Oakland, and his brother Reginald Mosley, 60, of Sacramento, have been sentenced to 12 to 30 months in prison for obtaining over $3 million in false COVID-19 relief funds, U.S. District Attorney Ismail J. Ramsey said on Friday.
According to Ramsey, the brothers gained the funds by filing false loan applications, claiming false numbers under their companies or using the name of a company that wasn’t theirs altogether, prosecutors said. According to Ramsey, the brothers gained the funds by filing false loan applications, claiming false numbers under their companies or using the name of a company that wasn’t theirs altogether, prosecutor’s said.
