Overview

• 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.