Philadelphia Tax Preparer Charged in Alleged $17 Million Pandemic Loan and False Return Scheme

Published Oct. 15, 2026. Case statuses are current as of that date.

A tax preparer who promises to get you money the government owes you can feel like a lifeline, especially in a crisis. Federal prosecutors in Philadelphia allege that one preparer used that trust to file false pandemic loan applications and tax returns for more than 100 clients, and then charged them "exorbitant fees" for it.

Tenia A. Thompson of Philadelphia was arrested and charged by indictment with 17 counts of wire fraud, two counts of bank fraud, one count of filing a false tax return and 49 counts of aiding the filing of a false tax return, U.S. Attorney David Metcalf announced Oct. 6, 2026 [1]. MyChesCo, citing the U.S. Attorney's Office for the Eastern District of Pennsylvania, reported her age as 51 [2].

Important: These are allegations in an indictment. Thompson has not been convicted and is presumed innocent unless and until proven guilty in court.

How the alleged scheme worked

According to the indictment as described by prosecutors [1]:

1. The business. Thompson owned and operated a financial services and tax preparation business called "Thompson Business and Tax Solutions" and "TBTS Taxes."
2. Pandemic loans. From about April 2020 through June 2024, she allegedly helped individuals and businesses apply for and obtain COVID-19 disaster-related loans to which they were not entitled, through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.
3. False returns. She allegedly prepared false tax returns that claimed tax benefits the clients were not entitled to.
4. Fees. After obtaining the loans and tax benefits, Thompson allegedly charged clients "exorbitant fees."

Prosecutors allege the activity involved more than 100 clients and generated at least $12 million in fraudulent loan proceeds, at least $5 million in fraudulent tax benefits, and at least $2.2 million in fees for Thompson. She also allegedly tried to obtain tens of millions of dollars in additional tax benefits for clients, but the IRS rejected most of those claims [1].

The government describes the SBA, the SBA-approved lenders that made PPP and EIDL loans, and the IRS as the targets of the alleged fraud. The release does not say whether any clients knew the applications or returns were false, and no clients have been publicly charged in this case [1].

The person charged

Tenia A. Thompson, 51, Philadelphia [1][2]

• Status: Arrested and charged by indictment in the U.S. District Court for the Eastern District of Pennsylvania (announced Oct. 6, 2026).
• Charges: 17 counts of wire fraud, two counts of bank fraud, one count of filing a false tax return, and 49 counts of aiding the filing of a false tax return.
• Maximum penalties if convicted: 20 years per wire fraud count, 30 years per bank fraud count, three years per tax count, up to three years of supervised release, and a fine of $18,750,000.
• Investigators: IRS Criminal Investigation, the FBI, the Amtrak Office of Inspector General and the SBA Office of Inspector General. Assistant U.S. Attorneys Louis D. Lappen and S. Chandler Harris are prosecuting.
• Defense: We found no public statement from Thompson or a defense attorney in the sources reviewed, and no plea had been reported.

Why this matters if you use a paid preparer

The IRS warns that "Taxpayers are legally responsible for what's on their tax return even if it is prepared by someone else" [3]. In other words, if a preparer puts false information on your return, the IRS can still hold you responsible for it.

Red flags

Based on IRS guidance [3] and the allegations in this case:

• A preparer who promises bigger refunds or relief money than others, or bases the fee on a percentage of your refund or loan.
• Fees that seem out of line with the work, especially charged after money arrives.
• A preparer who asks you to sign a blank or incomplete return or application.
• A preparer who won't sign the return or include a Preparer Tax Identification Number (PTIN).
• Any request to send your refund or loan money to the preparer's account.
• Business income, employees or expenses on your forms that you don't recognize.

What to do

1. Review every return and application before you sign it. Ask about anything you don't understand.
2. Get copies of everything filed in your name, and check your IRS online account at irs.gov.
3. If you think a preparer filed something false for you, talk to a tax professional or attorney you choose yourself about correcting it.
4. Report preparer misconduct to the IRS using Form 14157, Return Preparer Complaint.
5. Report suspected pandemic loan fraud to the SBA Office of Inspector General.

Case status (as of Oct. 15, 2026)

Defendant	Court	Status as of Oct. 15, 2026	Source
Tenia A. Thompson, 51, Philadelphia	U.S. District Court, E.D. Pa.	Charged: arrested and indicted (announced Oct. 6, 2026) on 69 counts; no plea or trial date reported; presumed innocent	[1], [2]

Those not convicted are presumed innocent. Statuses can change.

Sources

1. U.S. Attorney's Office, Eastern District of Pennsylvania, "Philadelphia woman indicted for sprawling scheme to defraud the government through bogus pandemic loan applications, false tax returns," Oct. 6, 2026, as republished by IRS Criminal Investigation. https://www.irs.gov/compliance/criminal-investigation/philadelphia-woman-indicted-for-sprawling-scheme-to-defraud-the-government-through-bogus-pandemic-loan-applications-false-tax-returns
2. "Philadelphia Tax Preparer Accused in $17 Million Fraud Scheme," MyChesCo, Oct. 8, 2026. https://www.mychesco.com/a/news/social-issues/crime-safety/philadelphia-tax-preparer-accused-in-17-million-fraud-scheme/
3. Internal Revenue Service, "Tips for choosing a tax return preparer" (accessed Oct. 13, 2026). https://www.irs.gov/newsroom/tips-for-choosing-a-tax-return-preparer

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