IRS Stimulus Check Fraud Lands Man in Prison

The Stimulus Swindle: How One Man’s Greed Led to a $1.2 Million IRS Heist

'Free government money—just file a few forms, and it’s yours.'

That was the promise that landed Marcus Dewayne Johnson, a 32-year-old from Atlanta, Georgia, in federal prison. What started as a desperate grab for pandemic relief funds spiraled into one of the most brazen IRS stimulus frauds of 2020—a scheme that netted Johnson over $1.2 million in stolen taxpayer dollars before the feds caught up with him.

The Perfect Crime?

When the CARES Act was signed into law in March 2020, millions of Americans received stimulus checks—direct payments meant to help people struggling during the COVID-19 pandemic. But Johnson saw an opportunity.

Using stolen identities—some from former prison inmates, others from public records—he filed dozens of fraudulent tax returns, claiming stimulus payments for people who didn’t exist or who had no idea their information was being used.

To cover his tracks, Johnson:

Opened multiple bank accounts under fake business names

Used prepaid debit cards to launder the funds

Fabricated W-2 forms to make the claims look legitimate

At first, the IRS processed the payments without question—the system was overwhelmed, and fraud detection was lagging. Johnson’s first few deposits went smoothly:
1
,
200
ℎ
𝑒
𝑟
𝑒
,
1,200here,2,400 there. But greed took over.

The Downfall

By summer 2020, the IRS had flagged suspicious activity—dozens of stimulus payments going to the same addresses and bank accounts. The U.S. Treasury Inspector General for Tax Administration (TIGTA) launched an investigation, tracing IP addresses and bank transfers back to Johnson.

When federal agents raided his apartment, they found:

A laptop filled with stolen identities

Stacks of prepaid debit cards

A ledger detailing every fraudulent deposit

Johnson was arrested and charged with wire fraud, identity theft, and money laundering. In 2022, he was sentenced to 12 years in federal prison and ordered to repay every cent.

The Aftermath

Johnson’s case was just one of thousands—the IRS estimates over $80 billion in pandemic relief funds were lost to fraud. His story serves as a chilling reminder of how easily criminals exploited a system designed to help those in need.

As for Johnson? He’ll have plenty of time to think about his choices—behind bars.

Case Closed.

Like this story? Follow for more true crime deep dives. And remember—if something seems too good to be true, it probably is.

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