4 Georgia men sentenced to prison in $17.5M tax fraud scheme

COLUMBUS, Ga. - Four Georgia men who conspired to steal millions in pandemic relief funds designed for struggling small businesses and workers have been sentenced to federal prison, federal officials announced. 

Columbus gang investigation

What we know:

Law enforcement first uncovered the fraudulent tax deposits during Operation Sweet Silence, a broader investigation into organized crime in Columbus, according to federal prosecutors. 

Wiretaps captured a suspect discussing a 20% cut from a fraudulent Employee Retention Credit scheme, prompting federal agents to open a tax fraud case.

Christopher Upshaw, 26, registered DOPE! Apparel, LLC in June 2022 and submitted five falsified tax returns in April 2023. 

The IRS issued $411,112.21 in refunds to Upshaw, who had no record of filing tax returns or employing staff and he used part of the money to buy a luxury vehicle.

Co-defendants Johnathon Swift, 34, Dontavis Williams, 41, and Donterious Sparks, 37, also used LLCs registered in their names to file false returns for tax credits they were not entitled to receive, prosecutors said. 

Together, the four men received 16 checks totaling $1,295,812.06 and attempted to steal $2,250,423.67 directly. 

The group also recruited others, submitting over 150 falsified returns on their behalf for a percentage of the refunds. 

In total, the group's scheme caused $17,489,749.80 in actual and attempted losses to federal taxpayers.

U.S. District Judge Clay Land sentenced all four defendants on Aug. 5. 

Williams received 115 months in prison and was ordered to pay $156,531.74 in restitution; Upshaw received 96 months and was ordered to pay $411,112.21; Swift received 63 months and was ordered to pay $417,095.56; and Sparks received 41 months and was ordered to pay $311,072.55. 

All four previously pleaded guilty to mail fraud, and there is no parole in the federal system.

What we don't know:

Officials have not yet confirmed if additional individuals recruited by the defendants will face federal charges. Authorities have also not disclosed whether the luxury vehicle purchased with the stolen funds has been seized.