An Independence, Missouri man has been sentenced for his involvement in a fraudulent scheme to claim nearly $1.4 million in COVID-19 relief funds. Richard Dean Schiele, Jr., aged 51, received his sentence from U.S. Chief District Judge Beth Phillips, which includes a year and a day in prison. Additionally, he is required to pay $130,125.09 in restitution to the Internal Revenue Service (IRS).
Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), businesses were encouraged to retain employees on their payrolls through the Employee Retention Credit. Schiele admitted in his guilty plea that he filed nine Employer’s Quarterly Tax Return forms with the IRS on April 22, 2023, for a company he created that same month, named Schiele Family Own Distribution. The forms falsely claimed $1,392,716 in credits due to COVID–19 relief. However, Schiele confessed that his company did not actually employ any staff between 2020 and 2022.
As a result of these fraudulent claims, the IRS issued checks to Schiele amounting to $478,890. The Treasury Department managed to recover $348,764.91 from his bank account. The sentence demands Schiele repays the remaining amount as restitution to the IRS.
Assistant U.S. Attorney Paul S. Becker prosecuted the case, with investigations conducted by the IRS-Criminal Investigation unit.
