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$44M COVID Tax Scheme: 7 Nabbed In Largest US Case Ever

Seven New Yorkers have been charged in a sweeping tax fraud scheme, accused of exploiting pandemic relief programs to steal over $44 million, federal prosecutors announced.

Seven people have been charged in the largest COVID relief fraud case in US history. 

Seven people have been charged in the largest COVID relief fraud case in US history. 

Photo Credit: Canva/John Guccione

The indictment by the US Attorney's Office for the Eastern District of New York, unsealed Wednesday, Jan. 22, alleges that the defendants filed over 8,000 fraudulent tax returns, seeking more than $600 million in COVID-19 relief funds through the Employee Retention Credit (ERC) and related programs.

Investigators determined the group successfully secured $44 million from the federal government.

Defendants

  • Long Island resident Keith Williams, age 46, of West Hempstead
  • Long Island resident Janine Davis, age 41, Wheatley Heights
  • Long Island resident Morais Dicks, age 55, Dix Hills
  • Orange County resident James Hames, Jr., age 65, Campbell Hall
  • New York City resident Jamari Lewis, age 26, Queens
  • New York City resident Ewendra Mathurin, age 32, Queens Village
  • New York City resident Tiffany Williams, age 41, Brooklyn

Six defendants were arrested and arraigned the same day. Jamari Lewis remains at large.

Fraudulent Luxury

Prosecutors state that the group used their illicit earnings to purchase:

  • Designer items from brands like Gucci, Louis Vuitton, and Versace
  • Luxury vehicles, including a Tesla Model Y and a Land Rover

Williams allegedly compared the scheme to “taking candy from a baby,” while Lewis, an aspiring rapper known as “Mr. Chaketah,” recorded a song boasting about the fraud. 

Federal agents seized millions of dollars in luxury goods during a search of Williams’ home.

How Scheme Worked

Operating out of a credit repair business called “Credit Reset,” the defendants filed false payroll tax returns claiming credits for businesses that did not exist or employ workers, according to authorities. They also submitted fraudulent applications under the Paycheck Protection Program (PPP).

Prosecutors allege the group flaunted their activities openly, mocking the system they exploited.

Consequences

The charges include:

  • Conspiracy to defraud the United States (up to five years)
  • Wire fraud (up to 20 years)
  • Aiding and assisting false tax returns (up to three years)

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