KINGSPORT, Tenn. (WJHL) — A Kingsport resident admitted guilt on Wednesday to charges of fraud and money laundering connected to a scheme involving fraudulent COVID-19 employment tax credits, as reported by the U.S. Department of Justice (DOJ).

Ryan Glidewell, of Kingsport, pleaded guilty to the following:

• Conspiring to commit wire and mail fraud
• Aiding and assisting in the preparation of a false tax return
• Money laundering

The United States Attorney’s Office for the Eastern District of Tennessee stated Glidewell collaborated with others to submit false tax returns. According to the DOJ, he and his accomplices established fictitious businesses to illegitimately claim tax credits.

The tax returns claimed more than $3.4 million in tax refunds that Congress created to help businesses struggling during the COVID-19 pandemic.

According to the DOJ, the IRS paid $1.8 million of the claimed false tax returns.

Glidewell is scheduled to be sentenced on Nov. 12, 2025.

As per the DOJ, he could face up to 20 years in prison for the conspiracy to commit wire and mail fraud charge, up to 10 years for the money laundering charge, and up to three years for aiding and assisting in filing a false tax return charge.