Philadelphia Woman Indicted for Sprawling Scheme to Defraud the Government Through Bogus Pandemic Loan Applications, False Tax Returns

PHILADELPHIA - United States Attorney David Metcalf announced that Tenia A. Thompson, 51, of Philadelphia, Pennsylvania, 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, arising from a scheme to defraud the Small Business Administration ("SBA"), multiple SBA-approved lenders participating in the Paycheck Protection Program ("PPP") and Economic Injury Disaster Loan ("EIDL") program - both established as part of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, a federal law enacted in March 2020 - and the Internal Revenue Service ("IRS").

The indictment alleges that, from approximately April 2020 through June 2024, Thompson, the owner and operator of a financial services and tax preparation business called "Thompson Business and Tax Solutions" and "TBTS Taxes," (collectively, "TBTS") prepared false tax returns for individuals and businesses and helped them apply for and obtain COVID-19 disaster-related loans and tax benefits to which the clients were not entitled. After fraudulently obtaining these loans and tax benefits for them, Thompson charged the clients exorbitant fees.

As alleged, the defendant engaged in this fraudulent activity on behalf of more than 100 clients, generating 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 herself. Moreover, Thompson fraudulently attempted to obtain tens of millions of dollars in additional tax benefits on behalf of her clients, but the IRS rejected most of these claims.

If convicted, the defendant faces a maximum possible sentence of 20 years in prison for each count of wire fraud, 30 years in prison for each count of bank fraud, and three years in prison for each tax count. In addition, she would face up to three years of supervised release, a fine of $18,750,000, and additional financial penalties.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

This case was investigated by the FBI, Amtrak Office of Inspector General, IRS Criminal Investigation, and the SBA Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Louis D. Lappen and S. Chandler Harris.

The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.