Seven Charged in $600M COVID-19 Tax Credit Fraud Scheme

Defendants allegedly exploited pandemic relief programs to file over 8,000 false tax returns, securing $44 million for personal luxury purchases.

Federal prosecutors have charged seven individuals with defrauding the U.S. government of over $600 million through fraudulent claims under COVID-19 relief programs, including the Employee Retention Credit (ERC) and Sick and Family Leave Credit (SFLC).
The scheme, allegedly led by Keith Williams and headquartered at his business, Credit Reset, involved filing more than 8,000 false tax returns between November 2021 and June 2023.
Defendants reportedly used shell companies and falsified tax information to claim credits for non-existent employees and wages, securing $44 million in payouts from the IRS.
Prosecutors allege that the stolen funds were spent on luxury goods, including designer items, high-end vehicles, and electronics, with some defendants openly flaunting their gains on social media.
Charges include conspiracy to defraud the United States, wire fraud, and aiding the preparation of false tax returns, with potential prison sentences ranging from five to thirty years if convicted.