Connecticut business owner pleads guilty to $799K IRS fraud

Tonya Barham of Hamden, Connecticut, pleaded guilty in federal court on Nov. 3, 2026, to filing false claims against the IRS.

Between July and November 2022, her business, Blacfoot LLC, improperly received $799,052 in pandemic-era tax refunds under the Employee Retention Credit (ERC) and the Sick and Family Leave Credit (SFLC) by fabricating payrolls and employee headcounts.

The business, a retail venture selling candles, lotions, oils, and wellness goods, had virtually no revenue and zero employees.

Between March 2022 and January 2023, unidentified associates used Barham's online tax-preparation account to submit falsified Form 941 quarterly payroll returns with fabricated salary figures.

Barham falsely claimed to IRS representatives that her business employed five full-time staff members to support the fraudulent paperwork.

After receiving nine refund checks, Barham transferred a portion of the $799,052 to the scheme's organizers.

U.S. District Judge Sarah F. Russell in New Haven presided over the plea, and Barham was released on a $40,000 bond.

Barham faces up to five years in federal prison, with sentencing scheduled for Jan. 26, 2027.

The IRS and Government Accountability Office (GAO) have warned that business owners remain personally liable for fraudulent refunds, facing full repayment, civil fines, and criminal charges without any statute of limitations for fraud.