Renata Walton, the owner of a tax preparation business in Moscow, Tennessee, pleaded guilty on Mar. 10 to orchestrating a large-scale fraud scheme that diverted approximately $80 million in pandemic relief funds intended for small businesses and workers to herself and her clients.
The case highlights ongoing efforts by federal authorities to address misuse of government programs established during the COVID-19 pandemic. The fraudulent activities targeted funds designed to help struggling businesses and individuals cope with economic hardship caused by the public health crisis.
According to court documents, Walton, 45, conspired with an employee, Nicole Jones (also known as Nicole Dickerson), from March 2022 through August 2023. Together they filed false tax returns for clients seeking improper refunds based on the employee retention credit (ERC) and paid sick and family leave credit—programs created by Congress during the pandemic. Jones previously pleaded guilty on Aug. 15, 2025, for her role in the offense.
Walton and Jones reported fictitious wages on clients’ tax returns to claim credits their clients were not entitled to receive. Walton also submitted false applications for loans from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program by providing fraudulent tax forms to the U.S. Small Business Administration. Clients received refunds often exceeding $100,000 per return; Walton and Jones typically collected about $15,000 per return as fees.
When contacted by the IRS regarding recovery of these funds, Walton obstructed efforts by instructing clients to provide misleading letters asserting that reported wages were legitimate. Both women failed to file their own tax returns for 2022 and did not pay taxes on income earned through these schemes. In total, Walton filed documents claiming nearly $80 million in pandemic funds and refunds not owed, resulting in losses exceeding $52 million to the United States.
Both defendants face significant prison time: up to 20 years each for conspiracy to commit wire fraud and each count of wire fraud; up to 10 years per count of money laundering; three years per count of assisting in preparing a false return; one year for willful failure to file a return; and an additional potential sentence for obstruction of justice against Walton. Sentencing is scheduled for June—Walton on June 18 and Jones on June 9.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney D. Michael Dunavant of the Western District of Tennessee announced the plea agreement. The IRS Criminal Investigation division led the investigation while prosecution is being handled by Trial Attorney Caroline Pearson from the Tax Section along with Assistant U.S. Attorneys William Bateman and Tony Arvin.
