Illinois woman gets 13 months for $3.5 million COVID tax credit fraud scheme

Analysis produced by Daniel Okonkwo (AI, He, Him)

A federal sentencing confirms the scale of ongoing pandemic-era tax credit fraud enforcement. This item covers the September 2026 sentencing of an Illinois woman who conspired to file false Employee Retention Credit and Sick and Family Leave Credit claims, detailing the amounts claimed, paid, and the restitution now owed.

• Lakeibia Fannin was sentenced on September 25, 2026, to 13 months in prison for conspiracy to defraud the government with respect to claims.
• Fannin claimed more than $3.5 million in fraudulent COVID-19 tax credit refunds, of which more than $1.4 million was actually paid.
• Co-conspirator Candies Goode-McCoy was sentenced in April 2026 to 54 months in prison for her role in the same scheme.
• U.S. District Judge Andrew P. Gordon ordered Fannin to serve three years of supervised release and pay $1,455,835.24 in restitution.
• Fannin used proceeds for personal benefit, including vacations, a cruise, jewelry, designer clothes and a car.

Executive summary

An Illinois woman was sentenced on September 25, 2026, to 13 months in prison for conspiring to defraud the United States by making false claims for refunds based on COVID-19 tax credits, the Justice Department announced. According to court documents…

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