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Philadelphia tax preparers Latisha Dudley and Timeeka Loud plead guilty in $109M fake COVID tax credit schemes

NBC10 Philadelphia reported on 10 November 2026 that Latisha Dudley, 51, and Timeeka Loud, 47, both of Philadelphia, pleaded guilty last week to aiding and assisting in the preparation of false tax returns, mail fraud…

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Source: nbcphiladelphia.com · published

Illustration: Impersonation scams

What happened

NBC10 Philadelphia reported on 10 November 2026 that Latisha Dudley, 51, and Timeeka Loud, 47, both of Philadelphia, pleaded guilty last week to aiding and assisting in the preparation of false tax returns, mail fraud and theft of government funds, according to U.S. Attorney David Metcalf of the Eastern District of Pennsylvania. Prosecutors said Dudley's scheme claimed about $86 million in COVID-19-related tax credits and Loud's about $23 million, through returns for businesses with little or no operations that inflated employee numbers and wages. The IRS paid out about $7.9 million on Dudley's returns and $4.6 million on Loud's, and each collected at least $1.2 million in preparer fees, according to court filings. Seven other people who worked with them pleaded guilty between May and October 2026. Both are due to be sentenced in February 2027.

How the scam works

According to U.S. Attorney David Metcalf of the Eastern District of Pennsylvania, as reported by NBC10 Philadelphia, Dudley's scheme claimed about $86 million in COVID-19-related tax credits and Loud's about $23 million, through returns for businesses with little or no operations that inflated employee numbers and wages. The IRS paid out about $7.9 million on Dudley's returns and $4.6 million on Loud's, and each collected at least $1.2 million in preparer fees, according to court filings. Both pleaded guilty to aiding and assisting in the preparation of false tax returns, mail fraud and theft of government funds. Seven other people who worked with them pleaded guilty between May and October 2026. Both are due to be sentenced in February 2027.

Tax credits created as COVID-19 relief were limited to qualifying businesses and wages. People who find unexpected credits on a return prepared in their name should review the filing and contact the IRS if they believe a preparer claimed relief they were not entitled to.

Source

NBC10 Philadelphia, 10 November 2026, reporting the U.S. Attorney for the Eastern District of Pennsylvania: https://www.nbcphiladelphia.com/news/local/2-philly-tax-preparers-7-clients-plead-guilty-in-covid-19-tax-credit-schemes/4494675/

https://x.com/ryan_eminhizer/status/2120184836895781297

Red flags

  • A tax preparer who claims large COVID-19-related tax credits for a business with little or no operations.
  • Inflated employee numbers or wages on a return you did not expect.
  • High preparer fees tied to an unusually large refund.
  • Pressure to sign filings you have not reviewed.

If you were targeted

  1. 1Review tax returns prepared in your name and query credits you did not qualify for.
  2. 2If you believe a preparer claimed false credits, contact the IRS and consider amending the return.
  3. 3Keep copies of what the preparer filed and any fees you paid.
  4. 4Do not sign a return you do not understand.
  5. 5Report suspected tax fraud through official IRS channels.

Dothan-area tax preparer Markita Thornton sentenced to 33 months for filing false returns causing $1.6M+ tax loss

The U.S. Attorney's Office for the Middle District of Alabama said on 12 November 2026 that Markita Latrice Thornton, 40, of Cowarts, Alabama, was sentenced on 10 November to 33 months in federal prison and one year o…

  • Markita Latrice Thornton, Cowarts AL; tax preparation business in Dothan, Alabama
  • Tax-preparer false-return prosecutions
Reported Nov 12, 20261 report
OtherReviewed

EFCC re-arraigns ex-Skye Bank chairman Tunde Ayeni on 18 counts over alleged N15.3bn fraud; he pleads not guilty

Nigeria's Economic and Financial Crimes Commission (EFCC) said on 11 November 2026 that it re-arraigned Tunde Ayeni, former chairman of the defunct Skye Bank Plc (now Polaris Bank Limited), before Justice H. Mu'azu of…

  • Tunde Ayeni; former chairman of defunct Skye Bank Plc (now Polaris Bank)
  • EFCC prosecution or arraignment reports (12 Nov 2026)
Reported Nov 11, 20261 report