A Brooklyn tax preparer who helped steer what prosecutors call one of the largest Covid-era tax credit scams in the country is headed to federal prison after a judge handed down a three-year sentence on Wednesday.
Tiffany Williams, 43, pleaded guilty to a single count of wire fraud tied to a sprawling plot that, according to federal authorities, tried to squeeze more than $600 million out of pandemic-era tax credits. Court filings say the group inflated or flat-out invented claims for the Employee Retention Credit and the paid sick and family leave credit, filing thousands of bogus quarterly payroll returns that ultimately brought in roughly $45 million before investigators shut the operation down.
According to the U.S. Department of Justice, Williams and her co-conspirators submitted the fraudulent filings between November 2021 and June 2023, sending in more than 8,000 returns in that period. A May 13 Justice Department release announced the 36-month sentence and noted that the case was prosecuted by the Tax Division’s Criminal Enforcement Sections alongside the U.S. Attorney’s Office for the Eastern District of New York.
How prosecutors say the scheme worked
As laid out by the U.S. Attorney’s Office for the Eastern District of New York, the operation was built around a credit-repair business called Credit Reset. Prosecutors say the crew leaned on shell companies and fake payroll records, then quietly filed returns that left off paid-preparer information in an apparent effort to hide who was really behind the paperwork.
The office says the group also relied on virtual private networks to help obscure their activity and pushed more than 8,000 returns that collectively sought over $600 million in credits. All told, investigators say the scheme generated more than $44 million in payouts.
Investigators and payouts
The U.S. Department of Justice said the investigation was led by IRS Criminal Investigation, with help from the U.S. Postal Inspection Service and Homeland Security Investigations. Although the filings were aimed at pulling in more than $600 million, prosecutors estimate the scam ultimately caused a loss to the United States of approximately $45 million.
Why the ERC drew fraud attention
The Employee Retention Credit was designed to help employers keep workers on payroll during the height of the pandemic. Its complicated eligibility rules, however, turned it into catnip for promoters who promised massive refunds with minimal vetting. The IRS has repeatedly warned businesses about aggressive ERC marketers and has at times paused processing to scrutinize suspicious claims.
Hoodline's earlier reporting
Hoodline previously reported on the unsealing of the indictment in January 2025, highlighting just how big the alleged scheme was. In that earlier record-breaking ERC indictment coverage, court papers described luxury purchases allegedly funded by the fraud and listed defendants with addresses in Brooklyn and on Long Island.
Sentence and legal exposure
Williams pleaded guilty to one count of wire fraud and received a 36-month sentence, according to federal filings and local coverage. The original indictment also details the stakes for the broader group, noting that wire fraud alone carries a potential penalty of up to 20 years in prison, and that several co-defendants are still moving through the court system, according to FOX 9.
Prosecutors say Williams’s sentence is part of a wider federal crackdown on pandemic-era benefit fraud. Investigators are continuing to track down others they believe took part in the scheme, and federal authorities are asking anyone with information about related conduct to come forward.
