Mississippi tax service owner sentenced for COVID-19 relief fraud

JACKSON, Miss. — State Auditor Shad White announced Thursday that Verneshia Cody, owner of TDK Accounting and Tax Services, pleaded guilty to fraud and bribery charges involving pandemic relief funds.

Cody entered a guilty plea to one count of fraud and one count of bribery of a public official. According to investigators, Cody submitted falsified documents to the Mississippi Department of Health (MSDH) to secure money through the Mississippi COVID-19 Health Disparities Elimination Project.

The State Auditor’s office determined that Cody used fraudulent invoices, improper expense claims, and counterfeit checks to obtain grant funds. Once received, Cody withdrew the sub-grant money for personal use.

“Thank you to the investigators who worked this case and the prosecutors who chose to bring charges,” White said. “Working with prosecutors, my office has recovered more money in the last seven years than any other seven-year period, and we’ve done this by staying true to our promise: zero tolerance for theft of taxpayer money.”

The Madison County Circuit Court sentenced Cody to 10 years in the custody of the Mississippi Department of Corrections. She is ordered to serve two years day-for-day, followed by five years of supervised probation.

The State Auditor’s Office encourages the public to report suspected fraud by calling 1-800-321-1275 or by visiting the auditor’s website.