Outrage in Louisiana: COVID Fraud Cases Top $10 Billion, Baton Rouge Woman Among Hundreds Sentenced

LAFAYETTE, La. (KPEL News) – Five years after the CARES Act was signed into law to provide financial relief during the COVID-19 pandemic, federal authorities say a whopping $10 billion in attempted fraud has been uncovered—with Louisiana residents among those convicted.

According to IRS Criminal Investigation (IRS-CI), special agents have launched over 2,000 investigations tied to fraudulent pandemic-era loans, credits, and tax relief programs. To date, more than 1,000 people have been indicted, and over 500 have been sentenced, with an average prison term of 31 months.

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“The CARES Act was an economic lifeline,” said IRS Special Agent Demetrius Hardeman. “We continue to pursue those who defrauded programs designed to help American workers and small businesses survive the pandemic.”

Louisiana in the Spotlight: Baton Rouge Woman Sentenced

One of those sentenced was Tiera R. Lands of Baton Rouge, who received 48 months in federal prison for wire fraud and money laundering. She submitted over a dozen fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), causing more than $1.5 million in losses.

Lands was also ordered to pay over $858,000 in restitution and forfeit another $138,000. After prison, she'll serve three years of supervised release.

This case is just one example of the shocking scale of abuse uncovered across the South.

ERC Fraud Surging in the South

IRS-CI also reports explosive levels of fraud involving the Employee Retention Credit (ERC). As of February, agents have opened 545 investigations tied to the ERC, involving more than $5.6 billion in suspected fraud. Thirty-eight people have been convicted so far, with sentences averaging nearly two years.

The Atlanta Field Office—which oversees Louisiana, Alabama, Georgia, and Mississippi—remains a hot zone for ongoing investigations.