NEW HAVEN, Conn. — A Hamden woman pleaded guilty in federal court in New Haven to a charge stemming from a scheme that collected nearly $800,000 in pandemic relief tax refunds for a business that prosecutors said had no employees, the U.S. attorney's office for Connecticut said Friday.

Tonya Barham, 63, waived indictment and pleaded guilty Nov. 3 before U.S. District Judge Sarah F. Russell to making false claims regarding IRS refunds, prosecutors said. The charge carries a maximum of five years in prison.

According to prosecutors, Barham owned Blacfoot LLC, a small business that sold health products, lotions, oils and candles. The company earned little to no income and had no employees, prosecutors said.

In late 2021, people Barham knew told her to open an account with an online tax preparation service, and she gave them the login information, according to court documents. Between March 2022 and January 2023, those people used the account to file false quarterly federal tax returns for Blacfoot that overstated its employees and wages, prosecutors said. The returns were used to claim employee retention credits and sick and family leave credits, programs Congress created in 2020 to help employers keep workers on the payroll during the COVID-19 pandemic.

When the IRS contacted her to verify the business's information, Barham falsely said it had five employees, prosecutors said.

Between July and November 2022, Blacfoot received nine IRS refund checks totaling $799,052, according to the U.S. attorney's office. Prosecutors said Barham kicked back part of the money to the people who orchestrated the scheme.

Barham is free on a $40,000 bond. Sentencing is scheduled for Jan. 26, 2027.

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