LOS ANGELES — A South Los Angeles man pleaded guilty to federal mail fraud charges in connection with a scheme that fraudulently obtained more than $9.3 million from the Internal Revenue Service through a COVID-19 business relief program, federal prosecutors stated Wednesday.
Darrick Wynell Brazier, 58, of the Manchester Square neighborhood, pleaded guilty to one count of mail fraud after admitting he submitted fraudulent employment tax returns seeking pandemic-related tax credits for businesses that had not paid qualifying wages.
According to his plea agreement, Brazier carried out the scheme from July 2022 through December 2023, using tax preparation software to submit false claims under a federal program designed to reimburse businesses for wages paid to employees unable to work because of COVID-19.
The Families First Coronavirus Response Act and subsequent amendments authorized refundable employment tax credits for eligible businesses that provided paid sick or family leave to employees affected by the pandemic.
Businesses seeking the credits were required to accurately report their number of employees, quarterly wages and qualifying leave payments.
Instead, prosecutors said, Brazier submitted fraudulent IRS Forms 941, the employer’s quarterly federal tax return, on behalf of two businesses registered in his name: DWB Holdings LLC and Brazier Transportation.
Both entities existed only on paper, according to his plea agreement. They claimed tax refunds based on wages supposedly paid to employees who did not exist.
The IRS relied on the false information and mailed U.S. Treasury refund checks to Brazier on behalf of the shell companies.
More than $1 million in kickbacks
Brazier also admitted helping clients submit fraudulent tax returns for businesses that were not eligible for the pandemic relief credits.
In exchange, the clients paid him kickbacks when their fraudulent claims resulted in Treasury refund checks.
The payments were made through cashier’s checks issued to Brazier, his businesses or other individuals and entities he designated.
Prosecutors said Brazier helped submit fraudulent claims for at least six additional businesses and received approximately $1.1 million in kickbacks.
In total, the scheme involving Brazier’s two shell companies and six client businesses sought approximately $11.5 million in fraudulent tax refunds.
The IRS paid approximately $9.3 million on those claims.
Brazier also admitted failing to report the illegal income he received from the scheme on his federal tax returns.
Sentencing scheduled for February 2027
U.S. District Judge Michael W. Fitzgerald scheduled Brazier’s sentencing for Feb. 24, 2027.
Brazier faces up to 20 years in federal prison.
🔴 QUICK FACT CHECKLIST
🔴 Defendant: Darrick Wynell Brazier, 58, Los Angeles.
🔴 Crime: Pleaded guilty to federal mail fraud.
🔴 Scheme: Used shell companies, fictitious employees and fraudulent tax returns.
🔴 Fraudulent Claims: Approximately $11.5 million.
🔴 IRS Loss: Approximately $9.3 million paid.
🔴 Kickbacks: Approximately $1.1 million.
🔴 Sentencing: Feb. 24, 2027.
🔴 Maximum Penalty: 20 years in federal prison.