An indictment was unsealed today in Central Islip, New York, charging seven individuals with operating a multi-state conspiracy in which they attempted to defraud the United States of more than $600 million by filing more than 8,000 false tax returns claiming COVID-19-related employment tax credits. 

In response to the COVID-19 pandemic and its economic impact, Congress authorized a tax credit that incentivized businesses to keep employees on their payroll, also known as the “Employee Retention Credit” or ERC.

Congress also authorized a credit that reimbursed businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit,” or SFLC, was equal to the wages the business paid the employees during their leave.

According to the indictment, from November 2021 to June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin, all current or former New York residents, repeatedly exploited these programs that were intended to help businesses impacted by the COVID-19 pandemic. The scheme was allegedly headquartered at Credit Reset, a purported credit repair business Keith