A Gonzales, Louisiana man has been charged in connection with a scheme to defraud the COVID-19 Employee Retention Credit (ERC) program. United States Attorney Ronald C. Gathe, Jr. announced that Damian R. Raby, 41, faces charges of conspiracy to launder money and obstructing the administration of internal revenue laws.
The charges stem from activities between August 2022 and April 2023, during which Raby allegedly orchestrated a plan to deceive the Internal Revenue Service by submitting fraudulent tax forms. These forms falsely claimed ERC tax credits for businesses purportedly based in the Baton Rouge area—businesses that either did not exist during the pandemic or had no legitimate operations before it.
The ERC was established under the Coronavirus Aid, Relief, and Economic Security Act ("CARES" Act) to encourage businesses to retain employees on their payrolls amid the pandemic's economic challenges.
Raby is accused of requesting Employer Identification Numbers (EINs) for these fictitious businesses and opening bank accounts in their names. He then filed tax documents misrepresenting employee numbers and payroll figures to claim substantial tax credits fraudulently. The Bill of Information alleges that this resulted in more than 30 checks being issued by the IRS, totaling approximately $4.4 million.
Once proceeds were received from this alleged scheme, Raby reportedly engaged in financial transactions designed to conceal and spend these funds across various accounts he controlled. The Bill further claims that these proceeds financed luxury vehicle payments, his home's mortgage, and other significant purchases.
As investigations into his conduct began, Raby allegedly took steps to impede them by providing false statements to an IRS agent, sending fictitious documents to the IRS, and encouraging a witness to provide false information.
The investigation involved multiple agencies including the Internal Revenue Service - Criminal Investigation, United States Treasury Inspector General for Tax Administration, and assistance from the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and J. Brad Casey.
It is important to note that a Bill of Information is merely an accusation; Damian R. Raby remains presumed innocent unless proven guilty in court.