3 Long Islanders accused of COVID fraud scheme to steal $650 million

Seven people, including three Long Islanders, were charged in Central Islip Wednesday with attempting to steal more than $650 million in COVID-19-related funds in what federal prosecutors contend is the largest employee retention credit scheme case of its kind.

In total, the defendants — six of whom were arrested Wednesday — obtained more than $44 million that they used to purchase high-end vehicles, designer watches, handbags and electronics, according to federal prosecutors from New York's Eastern District. 

One defendant, Jamari Lewis, an aspiring rapper, posted on social media a recording of a song he wrote called "I’m Really Sophisticated (IRS)" in which he can be seen "flaunting" designer clothes and boasting about stealing money from the government, according to court documents.

"The defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay afloat and lavished themselves with luxury goods while shamefully boasting about their criminal activity," John J. Durham, interim U.S. attorney for the Eastern District of New York, said in a news release.

Federal prosecutors describe Keith Williams, 46, of West Hempstead, as the "mastermind" of the fraudulent scheme, which was headquartered at Credit Reset, his Franklin Square-based business.

Williams and his co-defendants — Janine Davis, 41, of Wheatley Heights; Morais Dicks, 55, of Dix Hills; James Hames, Jr., 65, of upstate Campbell Hall; Ewendra Mathurin, 32, of Queens Village, and Tiffany Williams, 41, of Brooklyn — were arraigned Wednesday on charges of conspiracy to defraud the U.S., wire fraud and aiding and assisting the preparation of false tax returns. 

Each of the six pleaded not guilty Wednesday and were all released on bond.

Lewis, 26, of Queens, is expected to be arraigned at a later date.

Christopher Cassar, Keith Williams' Huntington-based attorney, called the indictment "overreaching" and said prosecutors will be unable to prove his client "intentionally and knowingly committed any conspiracy or tax crime."

Darnell Crosland, Dicks' Connecticut-based attorney, said his client "denies the allegations against him and is determined to clear his name ... He has always conducted his business with honesty and integrity. The charges are unfounded, and we are prepared to challenge the government's case."

Gilbert Bayone, a Manhattan-based attorney for Tiffany Williams, said "it’s very early in the process." 

Attorneys for the other defendants did not immediately respond to requests for comment.

Between November 2021 and June 2023, the defendants claimed more than $650 million in pandemic relief funds under the Employee Retention Credit and Sick and Family Leave Credit programs, which were designed by Congress to provide emergency financial assistance to families and businesses, prosecutors said.

To secure the funds, the defendants submitted more than 8,000 fraudulent quarterly tax returns on behalf of shell businesses that, in most cases, had no legitimate operations or workers, records show.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.