An indictment unsealed last week in federal court in Central Islip, New York, charges Keith Williams, Janine Davis (a.k.a. "Holiday Davis"), Morais Dicks, James Hames Jr. (a.k.a. "Poppa J"), Jamari Lewis, Ewendra Mathurin (a.k.a. "Rayda Mathurin") and Tiffany Williams (a.k.a. "Joy Williams") with conspiracy to defraud the U.S., wire fraud and aiding and assisting the preparation of false tax returns.
Between November 2021 and June 2023, the defendants allegedly filed more than 8,000 quarterly payroll returns claiming more than $600 million in pandemic relief funds. On behalf of themselves and their clients, they submitted filings seeking payment under the Employee Retention Credit and the Sick and Family Leave Wage Credit, authorities said, adding that several of the defendants also filed fraudulent Paycheck Protection Program loan applications.
Authorities call it the largest ERC-scheme case in the U.S. Six were arrested in New York and arraigned earlier this week. Lewis is not in custody and will be arraigned later. All are current or former residents of New York; the
The scheme primarily operated out of Williams's purported credit repair business, Credit Reset, authorities said. To claim the ERC and SFLC funds, the defendants and their co-conspirators allegedly submitted returns to the IRS on behalf of shell businesses that, in most cases, had no legitimate operations or employees.
In total, authorities claim, the defendants and their co-conspirators secured more than $44 million in government funds, which they spent on goods including jewelry, electronics, designer clothing and luxury automobiles. In a search of Williams' home, investigators report finding millions of dollars' worth of luxury goods, including designer items from Rolex, Gucci, Louis Vuitton, Fendi, Balenciaga and Versace, as well as high-end vehicles, including a Land Rover, a Polaris Slingshot and a Tesla Model Y.
They flaunted their criminal activity, authorities added: Lewis, an aspiring rapper who uses the stage name Mr. Chaketah, posted on social media a recording of song he wrote entitled, "I'm Really Sophisticated (IRS)" and the album cover for his song featured the logo of the Internal Revenue Service. In a recorded call with a co-conspirator, Williams allegedly compared the scheme to "taking candy from a baby."
An attempt to reach one defendant's attorney was not answered, but Darnell Crosland, Stamford, Connecticut-based attorney for Morais Dicks, said his client "firmly denies the allegations against him and is determined to clear his name. While the indictment includes multiple defendants, it is crucial to distinguish Mr. Dicks' actions and intentions from those of others. He has always conducted his business with honesty and integrity. The charges are unfounded, and we are prepared to challenge the government's case. We are confident that Mr. Dicks will be fully vindicated."
Added Gilbert Bayonne, New York-based attorney for Tiffany Williams, "It's very early in the process. She entered a not guilty plea at the arraignment and is working closely with her counsel."
The other defendants' attorneys did not answer requests for comment.
The seven each face up to 20 years in prison if convicted of wire fraud, up to five years for conspiracy and up to three years on aiding and assisting in the preparation of false tax returns.
