2 Philly tax preparers, 7 ‘clients' plead guilty in COVID-19 tax credit schemes

Philadelphia 2 Philly tax preparers, 7 ‘clients' plead guilty in COVID-19 tax credit schemes Latisha Dudley and Timeeka Loud pleaded guilty to helping prepare false tax returns for clients, mail fraud and theft of government funds. By Marcela Camargo • Published November 10, 2026 • Updated on November 10, 2026 at 1:11 pm Two Philadelphia tax preparers and seven of their "clients" pleaded guilty in connection with schemes involving fraudulent COVID-19 tax credits. Latisha Dudley, 51, and Timeeka Loud, 47, pleaded guilty last week to aiding and assisting in the preparation of false tax returns, mail fraud and theft of government funds. Dudley fraudulently claimed approximately $86 million in COVID-19-related tax credits, while Loud claimed approximately $23 million, according to U.S. Attorney David Metcalf. Stream Philadelphia News for free, 24/7, wherever you are with NBC10. WATCH HERE In addition, between May and October 2026, seven other people who worked with Dudley or Loud pleaded guilty to mail fraud and theft of government funds for their involvement in the same schemes, prosecutors said. “Every dollar lost to fraud is a dollar that can’t be used for a vital government program or service. My office is committed to bringing crooks like Dudley and Loud to justice and protecting the public fisc.," Metcalf said in a statement. According to court filings and statements, from late 2021 through early 2025, Dudley recruited people, including friends and family, to claim tax refunds from the IRS that they were not entitled to receive for businesses they purportedly owned. Although Dudley knew most of these businesses had minimal or no operations, prosecutors said she prepared false quarterly employment tax returns claiming large amounts of COVID-19-related tax credits. The returns inflated the number of employees and wages paid and falsely claimed eligibility for the tax credits. In total, Dudley and others working under her direction prepared more than 680 fraudulent tax returns claiming approximately $86 million in COVID-19-related tax credits that her clients were not entitled to receive. The IRS rejected some of these returns but issued refunds totaling approximately $7.9 million. Local Breaking news and the stories that matter to your neighborhood. weather forecast 10 hours ago Bright and calmer wind for Wednesday North Philadelphia 4 hours ago Dozens of shell casings marked for shooting under investigation in North Philly Dudley directed her clients to pay her a portion of their refunds and received at least $1.2 million in tax preparation fees, which she used to purchase large quantities of luxury clothing and jewelry, according to prosecutors. Officials said from 2022 through late 2023 Loud also recruited people, including friends and family, to claim tax refunds from the IRS they were not entitled to receive related to businesses they purportedly owned. In total, Loud and others working at her direction prepared over 130 fraudulent tax returns claiming approximately $23 million in refunds for COVID-19 related tax credits that her clients were not entitled to receive, prosecutors said. The IRS rejected some of these returns but issued refunds totaling approximately $4.6 million, and Loud directed her clients to pay her a fee typically amounting to 20% to 30% of their refunds. She received at least $1.2 million in preparer fees, which she used to purchase large quantities of luxury clothing and jewelry, prosecutors said. Loud pleaded guilty to nine counts of aiding and assisting in the preparation of false tax returns, 25 counts of mail fraud, and one count of theft of government funds. Dudley pleaded guilty to seven counts of aiding and assisting in the preparation of false tax returns, 27 counts of mail fraud, and one count of theft of government funds. Dudley and Loud are scheduled to be sentenced in February. Both face maximum penalties of three years in prison for each count of aiding and assisting in the preparation of false tax returns, 20 years in prison for each count of mail fraud, and 10 years in prison for each count of theft of government funds. This article tagged under: Philadelphia