A New Jersey resident has admitted to defrauding the IRS of over $1.4 million by filing false tax returns and stealing more than $180,000 from an elderly customer at his workplace, according to U.S. Attorney Alina Habba.
James J. Mastrogiovanni, 44, from Washington Township, pleaded guilty to several charges including conspiracy to defraud the United States, mail fraud, money laundering, and access device fraud. His sentencing is set for November 6, 2025.
Mastrogiovanni's fraudulent activities involved collaborating with Leon Haynes, a tax preparer. Together they exploited COVID-19 relief programs by submitting false Forms 941 between March 2021 and December 2022. These forms claimed non-existent employees and wages to secure tax refunds meant for small businesses. The scheme resulted in the U.S. Treasury disbursing at least $545,692 to Mastrogiovanni and his family members.
Haynes faces separate charges in a 63-count indictment for allegedly preparing over 1,600 false employment tax returns totaling more than $150 million. He is accused of using clients' identities without their consent or knowledge. His trial is scheduled for September 25, 2025.
In another fraudulent act from June to December 2023, Mastrogiovanni stole over $180,000 from an elderly victim by misusing bank details provided during a vehicle purchase transaction at the dealership where he worked.
The conspiracy charge carries a maximum penalty of five years imprisonment and a $250,000 fine; mail fraud could result in up to 20 years imprisonment; while money laundering and access device fraud each carry penalties of up to ten years imprisonment with similar fines.
U.S. Attorney Habba acknowledged contributions from special agents across various agencies including the IRS – Criminal Investigation led by Acting Special Agent Jenifer L. Piovesan; Social Security Administration’s Office of Inspector General under Corwin Rattler; U.S Postal Service inspectors led by Christopher Nielsen; and Mahwah Police Department officers directed by Chief Timothy O’Hara.
Assistant U.S Attorneys Matthew Stark and Fatime Meka Cano are handling the case as part of the Economic Crimes Unit in Newark.
This case falls under the District of New Jersey COVID-19 Fraud Enforcement Strike Force's purview—one among five such forces established nationwide by the Department of Justice targeting large-scale pandemic relief frauds perpetrated by criminal organizations.
Individuals with information on attempted COVID-19-related fraud can report it via the National Center for Disaster Fraud Hotline or through their online complaint form.
Defense Counsel for Mastrogiovanni: Frank Agostino Esq.
