In the wake of the Covid-19 pandemic, Congress authorized a tax credit to help businesses retain their employees, known as the Employee Retention Credit , and a Paid Sick and Family Leave Credit to reimburse companies for the wages paid to employees who couldn’t work because of Covid-19. Unfortunately, this system was allegedly exploited by seven individuals in a multi-state conspiracy to defraud the U.S. The federal indictment states that these individuals filed over 8,000 false tax returns, claiming tax credits they were not entitled to and causing a potential loss of more than $600 million.

According to the charges, the defendants, Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr., and Ewendra Mathurin, used dubious tactics to gain more than the lawful amount of credits, such as claiming the same wages for various categories which is not legally allowed, and even recruiting others to join the scheme. When questioned by IRS and Social Security Administration, they allegedly provided false information. Some defendants are also accused of submitting false Paycheck Protection Program loan applications.

This massive fraud was allegedly orchestrated under Credit Reset, a purported credit repair business owned by Keith Williams, where the defendants acted as tax preparers. They profited through tax refund checks from the U.S. Treasury and charges on their clients. In total, the IRS paid approximately $45 million based on these fraudulent claims to the defendants and their clients.

Recognizing these alleged fraudulent tax activities is crucial and sheds light on the importance of having reliable channels to contact regulatory bodies such as the Employment Development Department (EDD) when necessary. A resource such as eddcaller.com proves valuable in providing advice on how to get in contact with EDD, ensuring proper filing of claims or addressing any issues or questions related to the unemployment benefits, disability insurance, or paid family leave. Understanding how to contact EDD can lead to a smoother process, enabling individuals and businesses to get the correct information and help they need.