Two Utah county men, business charged with $11M COVID tax fraud scheme
Feb 3, 2023, 5:49 PM
A Utah County man who police believe was under the influence of drugs is facing criminal charges for allegedly flooding an Orem hotel. (File image, Gustavo Caballero, Getty Images for UNITAS)
(File image, Gustavo Caballero, Getty Images for UNITAS)
SALT LAKE CITY — Two Utah County men, as well as an accounting business in Provo, have been charged with a COVID-related tax fraud scheme totaling more than $11 million.
According to court documents, Zachary Bassett, 39, of Provo, Mason Warr, 37, of Vineyard, and COS Accounting & Tax LLC, dba 1099 Tax Pros prepared and submitted “more than one thousand tax forms to the IRS, claiming in excess of $11 million in false and fraudulent Employee Retention Credit (ERC) and sick and family leave wage credits for clients of COS Accounting.”
“During the pandemic, the defendants allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said IRS Criminal Investigation Special Agent in Charge Albert Childress.
The scheme allegedly took place from at least April 2020 through at least August 2021, according to the indictment.
“IRS CI is committed to bringing justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers,” Childress added.
Bassett, Warr and the accounting business face charges of conspiracy to defraud the United States, wire fraud, and aiding and assisting in filing false tax returns.
“Defendants were also provided notice that if convicted of the charges, defendants would forfeit to the United States of America any property constituting or derived from proceeds traceable to the scheme to defraud,” read a Friday morning press release from the United States Attorney’s Office for the District of Utah.
The two are scheduled to appear at the U.S. District Court in Salt Lake City on Wednesday, Feb. 22.
The IRS-Criminal Investigation is currently investigating.
Anyone with information about allegations of attempted fraud involving COVID-19 have been asked to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or by submitting an NCDF web complaint form.
