An indictment was unsealed last month in New York charging seven individuals with managing a multi-state conspiracy to defraud the Federal Government out of $600M. They did this by filing 8K fraudulent tax returns seeking Covid-19 Tax Credits.
According to the indictment, from November 2021 to June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin, all current or former New York residents, exploited programs intended to help businesses impacted by the pandemic. The scheme was allegedly headquartered at Credit Reset, a credit repair business Keith Williams owned and operated.
Acting as tax preparers, the defendants allegedly filed more than 8,000 false employment tax returns on behalf of themselves and their clients. Some of the highlights of the fraud include…
Paid Sick And Family Leave Credit (PSFLC)
They completed returns that claimed PSFLC in excess of the amount of wages reported on the tax returns, or listed the same wages as both qualified sick leave wages and qualified family leave wages
Employee Retention Credit (ERC)
Some of the returns claimed the SFLC and ERC for the same wages, which is prohibited by law.
PPP Loans
Some of the defendants also submitted false Paycheck Protection Program (PPP) loan applications.
The defendants profited from the scheme by receiving tax refund checks from the U.S. Treasury and by charging clients a fee or a percentage of the tax refund the client received. The defendants also recruited others into the scheme who were compensated by receiving a percentage of fraudulently obtained U.S. Treasury checks.
Ghost Preparers
Additionally, the defendants allegedly concealed their preparation of the false returns by not listing themselves as the paid preparer on the tax returns. This is what’s known as being a Ghost Preparer and is specifically prohibited by law.
Also, the defendants used Virtual Private Networks (VPNs) to obscure their IP addresses while filing the false returns. If a client did not have a business, members of the conspiracy allegedly would sometimes sell shell companies to them, in order to file false tax returns.
In total, the defendants sought more than $600 million of which the IRS paid out approximately $45 million. If convicted, the defendants face more time than even I can count.
I’ve said time and time again, that whether or not you get audited has everything to do with who does your return. Choose your accountant wisely.
Let me leave you with this…
I recently had a conversation with some of my out of state clients who literally asked about some of the phrases we use and our accent. Given the fact that I maintain a national license, about 30 percent of our clients are not from Illinois.
But the question got me thinking, so let me explain a couple of things to those of you who might not be born and bred Chicagoans.
It’s not the Willis Tower. It’s the Sears Tower or just plain Dick W for short.
We don’t drink Soda. It’s pop.
We don’t go to the movies. It’s called the show.
We don’t wear sneakers. They’re gym shoes.
We determine everything by saying that it’s north, south, or west. East is the lake. If you’re from the lake, you’ve got more issues than Newsweek.
I’m from the city that has the best Hot Dogs, Gyros, and Pizza. Period. End of story.
I don’t need to wear a hat that says the name of my city, to know where I’m from.
Your tall buildings will never impress us. We invented the concept.
There’s nothing Second or Third about Chicago.
Our basketball team has six rings.
The name of our football team is Da Bears. Only tourists use the word The.
It’s not called a train. It’s the L or the Subway.
30 degrees isn’t cold. Grow a pair already.
Screwing with my Dibs is a shooting offense.
The words are Caty Corner. Kitty Corner refers to a pet shop,
This place you call Hell we call home, and we wouldn’t have it any other way.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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