Advertisement

Federal grand jury indicts 7 in $600M COVID-19 benefits scheme

Federal prosecutors said seven people were indicted for a massive multi-state COVID-19 benefits scam that sought more than $600 million. File Photo by Mike Theiler/UPI
Federal prosecutors said seven people were indicted for a massive multi-state COVID-19 benefits scam that sought more than $600 million. File Photo by Mike Theiler/UPI | License Photo

Jan. 23 (UPI) -- A federal grand jury charged seven people with running a multi-state conspiracy attempting to defraud the United States for more than $600 million by filing more than 8,000 false tax returns claiming COVID-19 employment tax credits.

The indictment, unsealed in Central Islip, N.Y., said the suspects took advantage of a tax credit program passed by Congress to encourage employers to keep employees on their payrolls during the pandemic. It also paid workers on sick leave or family leave because of the pandemic.

Advertisement

Prosecutors said from November 2021 through June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin allegedly exploited the programs repeatedly by filing fake reports for themselves and their clients.

Forty-five counts related to the scheme were filed, including conspiracy to defraud the United States, wire fraud and aiding and assisting in the preparation of false tax returns. Prosecutors said Keith Williams, Lewis, Mathurin, Davis, Tiffany Williams, and Dicks were also charged with wire fraud in connection with the Payroll Protection Program applications they submitted.

"The defendants also allegedly recruited others into the scheme who were compensated by receiving a percentage of fraudulently obtained U.S. Treasury checks," the Justice Department said in a statement.

Advertisement

"In total, the defendants sought more than $600 million of which the IRS paid approximately $45 million to the defendants and their clients. Additionally, the defendants allegedly concealed their preparation of false tax returns by not listing themselves as the paid prepares on the tax returns."

Prosecutors said they used virtual private networks to obscure their IP addresses while filing and they would send false information to the IRS and Social Security when they asked for additional information.

Latest Headlines