New Haven man pleads guilty in $256,906 pandemic tax credit fraud scheme
Davante Mallard, 33, admitted his real estate company, which had no employees, collected federal refunds meant to help employers keep workers on the payroll during the COVID-19 pandemic, prosecutors said.
A New Haven man pleaded guilty Friday in federal court to making a false claim for IRS refunds in a scheme that collected $256,906 in pandemic-era tax credits for a business with no employees, the U.S. attorney's office for the District of Connecticut said.
Davante Mallard, 33, waived indictment and entered the plea before U.S. District Judge Sarah F. Russell in New Haven, prosecutors said.
Mallard owned Mallard Dynasty Realty Group, a real estate and property management business that earned little to no income, had no employees and had paid no wages, according to prosecutors.
In early 2022, people Mallard knew told him to open an account with an online tax preparation service and then give them the login information, which he did, prosecutors said. Between April 2022 and February 2023, those people used the account to file false quarterly payroll tax returns for the company that overstated its employees and wages in order to claim large refunds through the employee retention credit and the sick and family leave credit, two programs created by Congress in 2020 to help employers during the pandemic.
When the IRS contacted Mallard to verify the company's information, he falsely said the business had five employees, prosecutors said.
Between August 2022 and March 2023, the company received six IRS refund checks totaling $256,906, and Mallard kicked back part of the money to the people who organized the scheme, according to prosecutors.
The charge carries a maximum sentence of five years in prison. Mallard is free on a $50,000 bond. A sentencing date has not been set.
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