TUCSON, Ariz. – Roy L. Layne, a 44-year-old resident of St. David, Arizona, has pleaded guilty to two counts of Wire Fraud and one count of Filing a False Claim, the U.S. Attorney’s Office for the District of Arizona announced. Layne’s sentencing is set for February 3, 2025, before United States District Judge John C. Hinderaker.
Layne admitted that during the COVID-19 pandemic, he fraudulently applied for Economic Injury Disaster Loans and Paycheck Protection Program Loans from the U.S. Small Business Administration (SBA) in the names of fictitious businesses, himself, and others. His fraudulent applications led to the improper receipt of $306,700 in SBA loans.
Additionally, Layne admitted to filing false claims with the Internal Revenue Service (IRS), seeking over $7.4 million in pandemic-related tax refunds. He received $549,992 that he was not entitled to. Layne has agreed to pay a total of $856,692.91 in restitution to the SBA and the U.S. Treasury as part of his plea agreement.
A conviction for Wire Fraud carries a maximum penalty of 30 years in prison, a fine of up to $1 million, and a term of five years of supervised release. Filing a False Claim is punishable by up to five years in prison, a fine of $250,000, and three years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Mary Sue Feldmeier and Department of Justice Trial Attorney Matthew R. Hoffman are prosecuting the case.
