Four-year sentence for employment tax and PPP fraud upheld
United States v. Davis (11th Cir. 2025)
The Eleventh Circuit upheld a 48-month prison sentence for a business owner who diverted withheld payroll taxes and misused pandemic relief funds, finding the upward variance from sentencing guidelines reasonable.
Holding
The court held that Linda Davis’s four-year sentence for willful failure to pay over employment taxes was procedurally and substantively reasonable. The district court correctly considered the 18 U.S.C. § 3553(a) factors, justified an upward variance based on Davis’s repeated noncompliance and lack of restitution efforts, and did not rely on impermissible factors.
Why It Matters
Confirms that appellate courts defer heavily to district judges’ discretion in weighing § 3553(a) sentencing factors.
Reinforces that a taxpayer’s ability—but refusal—to pay restitution can justify a higher sentence.
Clarifies that failure to liquidate assets or make good-faith restitution payments may be treated as disregard for the law.
Illustrates how PPP loan fraud can aggravate sentencing in em…
