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
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:
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.