
Seven individuals face charges for orchestrating a massive COVID-19 tax fraud using tech-savvy methods.
Quick Takes
- Seven charged in the largest Employee Retention Credit fraud scheme, involving over $600 million.
- Illegal activities included filing thousands of false tax returns using shell companies and VPNs.
- Authorities have recovered $45 million, but over $44 million was already spent on luxury items.
- The case highlights ongoing efforts to combat COVID-19 fraud with legislative and investigative support.
A Massive Fraudulent Plot
Seven individuals are at the center of the largest COVID-19 tax credit fraud case ever in the United States. They allegedly filed over 8,000 false employment tax returns to secure millions from the Employee Retention Credit (ERC), designed to support businesses during the pandemic. Named in the indictment are Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr., and Ewendra Mathurin. These individuals now face various charges, including conspiracy and wire fraud.
The fraudulent scheme was reportedly executed under the facade of a credit repair business, “Credit Reset.” It included falsifying business records and exaggerating client earnings to create a veil of legitimacy. To mask their activities, participants allegedly avoided designating themselves as paid preparers, leveraging technological anonymity through VPNs. Tax credits, meant for genuine business hardship, were instead misused, leading to the siphoning of taxpayer money.
Federal grand jury indicts 7 in $600M COVID-19 benefits scheme
By Clyde Hughes, 1 day ago
UPI NewsJan. 23 (UPI) — A federal grand jury charged seven people with running a multi-state conspiracy attempting to defraud the United States for more than $600 million by filing more…
— Miranda C. Bell Reporting NMS15a Felony Crimes (@truthsearch1957) January 25, 2025
Lavish Spending and Investigative Efforts
The group is accused of spending the fraudulently obtained funds on extravagant purchases, including luxury goods. The IRS reports that due to their actions, roughly $45 million was unjustly claimed and illicitly utilized. The IRS-Criminal Investigation (CI) and the United States Postal Inspection Service (USPIS) are actively examining the case.
“Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds. The ERC was created to help businesses keep themselves and their employees afloat. Yet, the defendants allegedly stole $44 million from the relief pool and chose to spend their illicit gains on jewelry, designer clothing, and luxury cars. IRS-CI worked this case with our law enforcement partners to make sure that the egregious acts of those arrested today do not go unpunished. It’s time they face justice.” – IRS-CI New York Special Agent in Charge Chavis
To bolster the fight against such fraud, several legislative measures are being pursued, including the introduction of Sen. Joni Ernst’s “Complete COVID Collections Act.” This act intends to extend SIGPR’s authorization through 2030. Ensuring efforts continue against fraudulent abuse of pandemic-related funds is essential, and authorities are committed to recovering taxpayer money.
Investigation into this enterprise of deceit involves multiple law enforcement bodies, including Homeland Security Investigations (HSI). If convicted, those indicted face a daunting future, with potential sentences stretching up to 20 years for wire fraud alone.
Legal Defense and Ongoing Challenges
According to defense attorneys, the charges against some defendants, such as Keith Williams and Morais Dicks, lack merit, with claims they will challenge the government’s case. This reflects the intricate complexities inherent in such large-scale fraud cases, often involving numerous parties with varying degrees of involvement and culpability.
This case highlights a significant legal and financial crime aspect of the pandemic, one that requires a thorough judicial process and unyielding resolve from enforcement agencies. As proceedings continue, this landmark case serves as a critical reminder of the challenges in safeguarding government-funded relief against exploitation.
Sources:
- Defendants Charged With Filing Over 8,000 False Tax Returns In Largest COVID Tax Credit Case To Date
- Seven individuals charged in largest employee retention credit scheme case in the United States | Internal Revenue Service
- 7 Charged in America’s Biggest COVID Tax Credit Fraud Scheme | The Epoch Times