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Five years after the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, IRS Criminal Investigation (IRS-CI) has launched 2,039 tax and money laundering cases related to COVID fraud, with attempted fraud in these cases totaling $10 billion.

These cases include a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.

As of Feb. 28, 1,028 people have been indicted for their alleged COVID-related crimes, and 569 individuals have been sentenced to an average of 31 months in federal prison. IRS-CI has obtained a 97.4% conviction rate in prosecuted COVID fraud cases. Many investigations are ongoing.

“Although it has been five years since the CARES Act was enacted by Congress, our special agents continue to follow leads, investigate, and forward for prosecution the individuals who defrauded the program,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “The CARES Act was an economic lifeline for businesses struggling during the pandemic.”

Part of this investigation has focused on instances of Employee Retention Credit (ERC) fraud. ERC was a refundable tax credit for certain eligible businesses and tax-exempt organizations that were affected by the pandemic. With 545 investigations initiated, 75 have resulted in federal charges. Thus far, 38 defendants in those cases have been convicted with 18 defendants sentenced to an average of 21 months in prison.

Among the 38 convictions, Zsa Zsa Bouvier Couch from Montgomery was sentenced on Jan. 16, 2024 to 45 months in prison for offenses related to fraudulent loans she received through the Paycheck Protection Program. In addition, Couch was ordered to serve three years of supervised release following her prison term. In September 2023, a jury found Couch guilty on multiple counts of bank fraud, making false statements to a federally insured bank, and money laundering. Ultimately, Couch received a total of $609,687.47 of Paycheck Protection Program funds. Couch then distributed the money among herself, her husband, and other family members. Some of the money she allegedly used to purchase luxury vehicles.