Earlier today, a federal court in Central Islip unsealed an indictment charging seven individuals with conspiracy to defraud the United States, wire fraud, and aiding and assisting the preparation of false tax returns. The accused include Keith Williams, Janine Davis, Morais Dicks, James Hames Jr., Jamari Lewis, Ewendra Mathurin, and Tiffany Williams. Six of them were arrested in New York and will be arraigned before United States District Judge Gary R. Brown. Jamari Lewis remains at large and will be arraigned later.
The arrests and charges were announced by John J. Durham, United States Attorney for the Eastern District of New York; Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Harry T. Chavis Jr., Special Agent in Charge of IRS-CI New York; Brendan Donahue, Acting Inspector in Charge of USPIS New York Division; and William S. Walker, Special Agent in Charge of HSI New York.
"As alleged," stated United States Attorney Durham, "the defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay afloat."
IRS-CI's Chavis remarked on the exploitation: "Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds." He noted that $44 million was allegedly stolen from relief funds.
USPIS's Donahue emphasized ongoing efforts against fraud: "This program was created to aide struggling small businesses during the pandemic," he said. "USPIS will continue to aggressively investigate individuals who defraud the government."
HSI's Walker highlighted the coordination among agencies: "As alleged in the indictment," he said, "an astonishing amount of taxpayer funds were illegally siphoned by a criminal organization from a needs-based government fund."
The Employee Retention Credit (ERC) was established to provide financial assistance during COVID-19 by offering credits on wages paid by affected businesses. Between November 2021 and June 2023, over 8,000 fraudulent payroll tax returns claiming more than $600 million were filed under this scheme.
The operation primarily ran out of Williams's business called “Credit Reset.” Defendants submitted tax returns for shell companies without legitimate operations or employees. They reportedly secured over $44 million which they spent on luxury items such as jewelry and high-end vehicles.
Charges are allegations at this stage; all defendants are presumed innocent until proven guilty. If convicted, they face significant prison sentences for wire fraud, conspiracy, and aiding false tax return preparations.
The case is being prosecuted by Assistant U.S. Attorneys Adam R. Toporovsky and James R. Simmons along with Trial Attorney Richard J. Kelley from the DOJ Tax Division.
