PHILADELPHIA, PA — A Philadelphia tax preparer faces dozens of federal charges in an alleged COVID-19 relief and tax fraud scheme that prosecutors say generated at least $17 million in fraudulent loan proceeds and tax benefits for more than 100 clients.
Tenia A. Thompson, 51, of Philadelphia, was arrested and charged Tuesday 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 false tax returns, according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Federal prosecutors allege Thompson used her financial services and tax preparation business, which operated as Thompson Business and Tax Solutions and TBTS Taxes, to prepare false tax returns and help clients improperly obtain federal COVID-19 relief loans and tax benefits.
The alleged scheme operated from approximately April 2020 through June 2024, according to the indictment.
Prosecutors allege Thompson helped clients obtain funds through the Paycheck Protection Program and Economic Injury Disaster Loan program, both created or expanded as part of the federal government’s COVID-19 relief efforts, as well as tax benefits to which the clients allegedly were not entitled.
According to the indictment, Thompson conducted the alleged activity on behalf of more than 100 clients, generating at least $12 million in fraudulent loan proceeds and at least $5 million in fraudulent tax benefits.
Prosecutors further allege Thompson collected at least $2.2 million in fees from clients after helping them obtain the loans and tax benefits.
The indictment also accuses Thompson of attempting to obtain tens of millions of dollars in additional tax benefits for clients. The IRS rejected most of those claims, according to federal prosecutors.
If convicted, Thompson faces a maximum possible sentence of 20 years in prison on each wire fraud count, 30 years on each bank fraud count and three years on each tax count. Prosecutors said she could also face up to three years of supervised release, a fine of up to $18.75 million and additional financial penalties.
The FBI, Amtrak Office of Inspector General, IRS Criminal Investigation and U.S. Small Business Administration Office of Inspector General investigated the case. Assistant U.S. Attorneys Louis D. Lappen and S. Chandler Harris are prosecuting it.
All suspects, arrestees, and defendants are presumed innocent until proven guilty in a court of law.
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