Cochise County man pleads guilty in COVID fraud case

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.

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Layne pleaded guilty Aug. 28 to COVID loan fraud and tax fraud.

A wire fraud conviction carries a maximum penalty of up to 30 years in prison and a fine of $1 million. A conviction of filing a false claim carries a maximum penalty of five years in prison and up to a $250,000 fine.

Layne is set to be sentenced Feb 3, by U.S. District Judge John C. Hinderaker.