HAMDEN, CT — A Hamden woman pleaded guilty this week to a federal charge stemming from a scheme that fraudulently obtained nearly $800,000 in COVID-19 pandemic relief funds, according to federal prosecutors.
Tonya Barham, 63, pleaded guilty Nov. 3 to making false claims regarding IRS refunds during a hearing before U.S. District Judge Sarah F. Russell in New Haven, U.S. Attorney for Connecticut David X. Sullivan announced.
According to court documents and statements made in court, Barham owned Blacfoot LLC, a small business that sold health products, lotions, oils and candles. The business earned little to no income and had no employees, according to officials.
"In late 2021, Barham was contacted by individuals who she knew who instructed her to open an online account with a business that provided online tax preparation services," officials wrote in a news release. "Barham then provided the individuals with the account information and password. Between March 2022 and January 2023, the individuals accessed the account and prepared and filed with the IRS fraudulent Employer's Quarterly Federal Tax Returns (Forms 941) for Blacfoot LLC. The Forms 941 misrepresented the number of employees and total wages paid, and were used to apply for large ERC and SFLC refunds. When contacted by the IRS to verify information about Blacfoot LLC, Barham provided false information, including that her business had five employees."
The federal pandemic relief programs, the Employee Retention Credit and the Sick and Family Leave Credit, were established in 2020 to help businesses retain employees and reimburse employers for certain wages and paid leave expenses during the COVID-19 pandemic.
Between July and November 2022, Blacfoot LLC received nine IRS refund checks totaling $799,052, according to federal authorities.
Barham then gave a portion of the fraudulently obtained funds to the individuals who orchestrated the scheme, prosecutors said.
Barham waived her right to be indicted and pleaded guilty to making false claims regarding IRS refunds, an offense that carries a maximum prison sentence of five years.
She was released on a $40,000 bond pending sentencing, which is scheduled for Jan. 26, 2027.
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