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Published on January 23, 2025
Seven Charged in Record-Breaking Employee Retention Credit Fraud Case in Central IslipSource: Google Street View

Earlier today, an indictment was unsealed at the federal court in Central Islip, revealing charges against seven individuals in what's being called the largest Employee Retention Credit scheme case in the United States. The defendants are accused of gaming the system during a time when financial aid was meant to support the faltering economy and keep employees on payroll during the pandemic. According to the U.S. Attorney's Office for the Eastern District of New York, over 8,000 fraudulent tax returns were submitted, to claim more than $600 million in tax credits.

As stated by 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 and lavished themselves with luxury goods while shamefully boasting about their criminal activity." These individuals, now facing serious charges, seemingly attempted to profit off a system designed to help businesses and families weather the impacts of COVID-19, as detailed by the U.S. Attorney's Office. The seven accused include Keith Williams, Janine Davis, Morais Dicks, James Hames, Jr., Jamari Lewis, Ewendra Mathurin, and Tiffany Williams. Six have been arrested while Jamari Lewis remains at large.

The defendants allegedly operated a scheme out of what was purportedly a credit repair business named "Credit Reset." They are said to have filed tax returns for shell businesses that were non-existent in most cases. This blatant misuse of government resources meant to provide emergency financial support during the pandemic highlights a grim exploitation. The group reportedly secured over $44 million before law enforcement intervened. They indulged in luxury goods and flaunted their activities, with one defendant, Lewis, an aspiring rapper, even taunting the system in his music.

As reported by the U.S. Attorney's Office, the charges include conspiracy to defraud the United States, wire fraud, and aiding in the preparation of false tax returns. If convicted, these individuals may face up to 20 years in prison for wire fraud, up to five years for conspiracy, and up to three years for the tax-related charges. Despite standing accused, the defendants are reminded by law to be presumed innocent unless and until proven guilty.

The collaborative efforts of IRS-CI, USPIS, HSI, DOJ Tax and the United States Attorney’s Office for the Eastern District of New York have been lauded for bringing these allegations to light and continuing to protect the integrity of taxpayer funds.