A New Jersey tax preparer has been convicted by a federal jury for orchestrating a scheme to obtain more than $170 million in fraudulent COVID-19-related tax refunds from the Internal Revenue Service (IRS). The announcement was made by Acting U.S. Attorney and Special Attorney Alina Habba.
Leon Haynes, 52, of Teaneck, was found guilty on 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion. The conviction followed a six-day trial before U.S. District Judge William J. Martini in Newark federal court. Sentencing is scheduled for March 12, 2026.
According to evidence presented at trial, Congress created employee retention and sick/family leave tax credits during the COVID-19 pandemic to support small businesses and help them retain employees. Between November 2020 and May 2023, Haynes prepared or assisted in preparing over 1,900 false employment tax returns claiming these credits on behalf of himself and his clients. Many of these filings included fabricated employee numbers or wages.
Haynes and his associates sought more than $170 million in refunds through these submissions, with the government paying out over $55 million as a result. During this period, Haynes charged clients a percentage fee based on refund amounts and requested cash payments while failing to report this income on his own taxes.
Each count related to false return preparation carries up to three years in prison and a $250,000 fine; mail fraud can result in up to 20 years imprisonment; each count of tax evasion carries up to five years’ imprisonment.
Acting U.S. Attorney Alina Habba credited special agents from IRS Criminal Investigation under Special Agent Jenifer L. Piovesan; Social Security Administration’s Office of Inspector General under Amy Connelly; and U.S. Postal Inspection Service under Christopher Nielsen for their work on the case.
Assistant U.S. Attorneys Fatime Meka Cano, Matthew Stark, and Peter A. Laserna prosecuted the case with substantial assistance from the Justice Department’s Tax Division.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is part of a national effort by the Department of Justice targeting large-scale pandemic relief fraud involving multiple states or criminal organizations using interagency teams led by prosecutors and data analysts.
“Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form,” according to officials.
