California Man Sentenced to 35 Months in Prison for Submitting False Claims Against the US in Relation to a COVID-19 Fraud Scheme

SACRAMENTO, Calif. — Jason Toland, 44, of Wheatland, Calif. was sentenced today to 35 months in prison for submitting false claims against the U.S. related to COVID-19 pandemic tax credits. Toland was also ordered to pay?$2,078,462 in restitution to the Internal Revenue Service and the U.S. Small Business Administration .

According to court documents, Toland attempted to obtain more than $13.4 million in COVID?19 pandemic relief funds by filing multiple false tax returns with the Internal Revenue Service seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek more than $11 million in such tax refunds to which he was not entitled. In addition, between 2020 and 2023, Toland used the shell companies to fraudulently obtain a total of more than $1.7?million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. All these tax credits and programs were intended to alleviate the economic harm caused by the COVID-19 pandemic on real businesses with real employees and operating expenses.

Of the more than $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained more than $1.95 million. All the funds Toland received went to his own personal enrichment.

“The COVID-19 Fraud Strike Force continues to pursue pandemic fraud, including the abuse of tax credits for personal gain,” said U.S. Attorney Talbert. “Today’s sentence demonstrates that false claims targeting credits meant for real businesses suffering real consequences of the pandemic will be identified and prosecuted.”

“Mr. Toland’s fraudulent and nefarious scheming took aim at funds designated to help both small businesses and American citizens in the midst of a global pandemic,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “ IRS Criminal Investigation does not and will not sit idly by while financial criminals seek to exploit the American tax system. We are the experts in financial investigations, and we build cases that result in justice.”

This case was the product of an investigation by IRS Criminal Investigation in collaboration with the IRS’s Nationally Coordinated Investigation Unit with assistance from the U.S. Small Business Administration, Office of Inspector General and the Federal Bureau of Investigation (FBI) . Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.?