Northern California man gets prison for seeking more than $13 million in bogus COVID relief

A Northern California man was sentenced Tuesday to two years and 11 months in prison for seeking more than $13.4 million in COVID-19 relief funds and successfully obtaining nearly $2 million, federal prosecutors said.

Jason Toland, 44, pleaded guilty in May to making false claims against the United States, the U.S. Attorney’s Office for the Eastern District of California said in a news release. The Wheatland man faced another count of making false claims against the United States, but it was dismissed under a plea deal, according to court documents.

Toland filed fraudulent tax returns that falsely claimed an employee retention and COVID sick and family leave credits. Through these credits, Toland sought more than $11 million in tax refunds for shell companies that had no employees or actual business activity, prosecutors said in a news release.

The shell companies were also used by Toland to seek more than $1.7 million in other relief funds under the Paycheck Protection Program and the Economic Injury Disaster Loan program.

In total, Toland received more than $1.9 million, prosecutors said. He was ordered to pay more than $2 million in restitution.

“All the funds Toland received went to his own personal enrichment,” prosecutors said in the news release.