Federal authorities described Damian Raynard Raby as the “kingpin” of one of the largest fraud schemes in East Baton Rouge Parish during the COVID-19 pandemic.

He recruited a handful of accomplices and used them to launch fictitious businesses and open real bank accounts in their names. Raby submitted dozens of applications to the IRS for employee retention tax credits to aid those fake businesses.

In all, he sought more than $21.5 million through dozens of applications. He and his cohorts collected more than $2.6 million as part of the scam, which spanned from August 2022 to April 2023. As the mastermind who orchestrated the scheme, Raby kept about $1.5 million for himself.

Instead of using the funds to retain employees on his payroll, he diverted the money and used it to buy multiple luxury vehicles and to pay the mortgage on his house, records show.

Raby, 42, received his punishment for the multimillion-dollar ploy inside a federal courtroom Wednesday, where a Baton Rouge judge sentenced him to 18 years in prison.

“Your mindset, Mr. Raby, is that it’s OK to take $2 million and intend to take $20 million,” U.S. District Judge John deGravelles said as he handed down the sentence. “That’s OK to you because it’s the government and you’re not ‘intending to harm anyone.’ But when you take $2 million from the government, you’re taking it from everyone. You’re harming people.”

Raby pleaded guilty Jan. 15 to charges of conspiracy to launder money and obstruction of due administration of the IRS.

The employee retention credits, or ERC, were tax reimbursements through the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, that were designed to encourage businesses to keep paying their employees during the pandemic.

This is a developing story. Check back later for updates.