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 are 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 face arraignment later.
The announcement was made by John J. Durham, United States Attorney for the Eastern District of New York; Karen E. Kelly from the Justice Department’s Tax Division; Harry T. Chavis Jr., Special Agent in Charge at IRS-CI New York; Brendan Donahue from USPIS New York Division; and William S. Walker from HSI New York.
“As alleged, 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,” stated United States Attorney Durham.
“Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds," said IRS-CI Special Agent Chavis.
“This program was created to aide struggling small businesses during the pandemic," noted USPIS Acting Inspector Donahue.
William S. Walker from HSI remarked on the coordination among law enforcement agencies in bringing justice against those exploiting government funds.
The Employee Retention Credit (ERC) was introduced in 2020 as part of efforts to support businesses affected by COVID-19. It provided financial incentives for businesses continuing employee payments despite closures or revenue drops due to government orders related to the pandemic.
Court documents reveal that between November 2021 and June 2023, over 8,000 quarterly payroll tax returns were filed by the defendants claiming more than $600 million in relief funds under ERC and SFLC programs.
Operating primarily out of a business called "Credit Reset," these filings involved shell companies lacking legitimate operations or employees. The fraudulent scheme secured over $44 million used for luxury purchases such as jewelry and high-end vehicles like Rolex watches and Tesla cars.
The charges remain allegations until proven guilty. If convicted, each defendant faces up to 20 years for wire fraud charges alone.
The case is managed by attorneys Adam R. Toporovsky and James R. Simmons along with Trial Attorney Richard J. Kelley under guidance from Paralegal Specialist Janelle Robinson.