A former state employee has been sentenced to two years in prison and ordered to pay the government 99-thousand dollars in restitution for a fraudulent tax credit scheme. 55-year-old David Loney of Dubuque pled guilty in April to aiding and assisting in the filing of a false tax return and making a false statement within the jurisdiction of the U.S. Department of Labor. Loney had been running a consulting business in which he acted as a representative for employers who were seeking to take advantage of federal tax credits that encourage employers to hire at-risk workers. Loney had been employed at Iowa Workforce Development and used his knowledge of the program to file false information with the government, as well as to his clients. As a result, his clients claimed inflated tax credits on federal forms and paid Loney inflated fees for services.
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