• Seven New Yorkers charged with $600 million COVID-19 tax credit fraud.
• Scheme involved filing over 8,000 false returns, securing at least $44 million from the IRS.
• Defendants used shell companies and VPNs to obscure their activities.
• Luxury items and vehicles were purchased with stolen funds, including a Tesla and Rolexes.
• DOJ and law enforcement intensify efforts to combat fraud in government relief programs.

Seven individuals from New York have been charged with perpetrating one of the largest COVID-19 tax credit fraud schemes in the nation, attempting to steal $600 million in intended relief funds. The U.S. Department of Justice (DOJ) unsealed an indictment on January 22, alleging that Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr., and Ewendra Mathurin orchestrated a multi-state conspiracy to file over 8,000 false tax returns. The scheme, which operated primarily through Williams’ credit repair business, Credit Reset, managed to secure at least $44 million from the IRS, much of which was spent on luxury goods and vehicles.

The defendants allegedly exploited the Employee Retention Credit (ERC) and Paid Sick and Family Leave Credit (SFLC) programs, both designed to support struggling businesses and employees during the pandemic. According to the indictment, the group used Virtual Private Networks (VPNs) to obscure their IP addresses and filed returns on behalf of shell companies with no legitimate operations or employees. This sophisticated approach made it difficult for authorities to trace the fraudulent activities.

“Keith Williams and his co-conspirators 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,” said U.S. Attorney John J. Durham. “They lavished themselves with luxury goods while shamefully boasting about their criminal activity.”

Underhanded tactics and arrogance

The fraudsters’ tactics were both audacious and brazen. They charged clients a percentage of the tax refunds they received and, in some cases, sold shell companies to individuals who lacked a legitimate business to file false returns. One of the most egregious examples of their arrogance came from Jamari Lewis, an aspiring rapper who posted a song titled “I’m Really Sophisticated (IRS)” on social media. In the track, Lewis boasts about his criminal exploits, singing, “That government bread I ran that s–t up, like how am I gon’ lose?”

The indictment also revealed that Williams, during a recorded conversation, likened the scheme to “taking candy from a baby.” A search warrant executed at his home uncovered millions of dollars in luxury items, including Rolex watches, Gucci handbags, and a Tesla Model Y, all purchased with the ill-gotten gains.

The government’s response

The ease with which these individuals were able to exploit the system highlights significant vulnerabilities in the government’s pandemic relief programs. The rapid disbursement of funds, while necessary to provide immediate assistance, also created opportunities for fraud. However, the DOJ and other law enforcement agencies have been ramping up their efforts to combat such schemes.

The arrest of these seven individuals serves as a reminder of the ongoing battle against fraud in government relief programs. While the scheme was sophisticated and the defendants were brazen, their actions have not gone unpunished. The Trump administration, known for its tough stance on fraud and corruption, is expected to continue its efforts to bring more individuals like these to justice.

As Senator Joni Ernst (R-Iowa) emphasized, “Con artists took advantage of small businesses’ pain during COVID to defraud government programs designed to help hardworking Americans. While we are $36 trillion in debt, we especially cannot afford to leave more than $200 billion floating around, especially in the hands of fraudsters.”

The hope is that this case will set a precedent, deterring others from attempting similar schemes and ensuring that taxpayer dollars are used for their intended purpose.

Sources for this article include:

TheEpochTimes.com

KCTV5.com

NYDailyNews.com

NewsDay.com