A New Jersey tax preparer, Leon Haynes, was convicted by a federal jury for orchestrating a scheme to claim 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.
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 verdict followed a six-day trial before U.S. District Judge William J. Martini in Newark federal court. Sentencing is set for March 12, 2026.
The case documents and evidence presented at trial showed that between November 2020 and May 2023, Haynes led a large-scale operation exploiting pandemic-era tax credits designed to support small businesses during the economic impact of COVID-19. Congress had authorized an employee retention tax credit and sick and family leave credit as part of its relief efforts.
Haynes prepared or assisted in preparing over 1,900 false employment tax returns for himself and his clients. Most of these filings included fabricated numbers of employees or wages to falsely claim eligibility for the credits. In total, Haynes and his co-conspirators sought more than $170 million in refunds from the IRS and succeeded in obtaining over $55 million.
Throughout the scheme, Haynes charged clients a percentage fee based on their refund checks and often requested cash payments. He did not report this income on his own taxes.
Each count related to preparing false returns carries up to three years in prison and a $250,000 fine; mail fraud carries up to 20 years in prison; each count of tax evasion can result in up to five years imprisonment.
Acting U.S. Attorney Alina Habba stated: “Acting U.S. Attorney and Special Attorney Alina Habba credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation.”
Assistant U.S. Attorneys Fatime Meka Cano, Matthew Stark, and Peter A. Laserna prosecuted the case with help 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 to investigate large-scale pandemic relief fraud involving criminal organizations across state lines.
Individuals with information about attempted COVID-19 fraud are encouraged to report it via phone or through an online complaint form provided by the Department of Justice’s National Center for Disaster Fraud at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
