DeKalb County

Former IRS employee used Instagram to help steal $3.2M in COVID relief funds

Stock photo of money. (Pixabay)

DEKALB COUNTY, Ga. — A former employee of the U.S. Small Business Administration and Internal Revenue Service was sentenced to six years and six months in federal prison on Sept. 1 for taking bribes to submit and approve millions of dollars in fraudulent pandemic relief payments.

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Attallah Williams, 33, of Hampton, was also ordered to pay $3,272,000 in restitution and complete three years of supervised release.

Williams pleaded guilty on Feb. 11 to conspiracy to defraud the United States through fraudulent claims. Prosecutors said Williams orchestrated a three-year scheme that exploited four separate emergency pandemic relief programs using her insider access as a federal employee.

In total, Williams submitted false claims for more than $3.5 million in relief funds meant for struggling businesses. Federal law enforcement disrupted the scheme after $3,272,000 in taxpayer funds had been distributed.

The scheme began with fraudulent applications submitted directly to federal emergency relief programs. Williams submitted false applications to the SBA to obtain Economic Injury Disaster Loans for non-operational businesses. She also submitted a fraudulent application for a Paycheck Protection Program loan, guaranteed by the SBA, on behalf of a non-operational business.

Williams later obtained a position as an SBA loan officer, giving her insider access to approve fraudulent applications for the Economic Injury Disaster Loan Advance grant program. She advertised on Instagram to recruit accomplices who submitted applications for non-operational or ineligible businesses under her guidance. Williams then improperly approved those applications in exchange for a share of the money and encouraged her conspirators to recruit additional participants by offering referral fees.

U.S. Attorney Theodore S. Hertzberg highlighted the abuse of public authority involved in the case. “Williams misused her public office to steal taxpayer money intended to promote employment during a national crisis and she deepened her fraud by recruiting accomplices through Instagram,” Hertzberg said. “We will continue to work tirelessly to uncover and hold accountable those who violate the public’s trust and loot the treasury.”

Federal investigators emphasized the betrayal of public trust caused by government employees exploiting emergency funding. Marlo Graham, special agent in charge of FBI Atlanta, addressed the scale of the operation.

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“Williams turned positions of public trust into an opportunity to enrich herself, using her federal access and social media to recruit others and funnel millions of dollars in fraudulent pandemic relief into her scheme,” Graham said. “

The FBI will continue to pursue those who exploit their positions for personal gain and steal money meant to support the American people.”After leaving the SBA, Williams obtained a job as an IRS tax examining technician. In that role, she again used social media to recruit accomplices, instructing and assisting them in submitting fraudulent tax documents to claim payments under the Employee Retention Tax Credit program while receiving a fee for each application.

Demetrius Hardeman, special agent in charge of the IRS Criminal Investigation Atlanta Field Office, noted the continued effort to prosecute COVID-19 relief fraud.

“Attallah Williams used her positions at the SBA and IRS to steal millions from COVID-19 relief programs,” Hardeman said. “Those who defrauded these programs may believe they escaped detection, but this case proves that IRS Criminal Investigation and its federal law enforcement partners will continue holding those responsible for defrauding COVID-19 relief programs accountable.”

Local authorities also assisted in the federal investigation. DeKalb County District Attorney Sherry Boston stressed the importance of deterrent sentences for government workers who steal public funds.

“The Office of the DeKalb County District Attorney is proud to work with our federal law enforcement partners to investigate and hold accountable those who misuse taxpayer dollars for their own gain, especially government employees,” Boston said. “Defendant Williams was convicted of abusing her positions within the federal government to take money earmarked to help struggling businesses during the COVID-19 pandemic. This sentence should send a strong message to anyone who steals public funds that they will be punished accordingly.”

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