A New Jersey tax preparer has been convicted for orchestrating a scheme that sought over $170 million in fraudulent COVID-19-related tax refunds, according to an announcement 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 verdict followed a six-day jury trial before U.S. District Judge William J. Martini in Newark federal court. Sentencing is set for March 12, 2026.
The case documents and trial evidence showed that Congress had authorized special employee retention and sick/family leave tax credits during the COVID-19 pandemic to help small businesses maintain operations and keep employees on payroll. Between November 2020 and May 2023, Haynes exploited these programs by preparing or helping to prepare more than 1,900 false employment tax returns for himself and his clients. Most of these filings included fabricated numbers of employees or wages.
Haynes and his co-conspirators attempted to obtain more than $170 million in fraudulent refunds from the IRS on behalf of their businesses and clients. The government ultimately paid out over $55 million as a result.
According to authorities, Haynes charged his clients a percentage fee based on their refund checks—often requesting cash payments—and did not report this income on his own taxes.
Each count related to aiding or assisting in the preparation of false returns carries up to three years in prison and a $250,000 fine; mail fraud can result in up to 20 years in prison; each count of tax evasion carries up to five years in prison with similar fines.
Acting U.S. Attorney Habba credited special agents from IRS Criminal Investigation; the Social Security Administration’s Office of Inspector General; and postal inspectors from the U.S. Postal Inspection Service with investigating the case.
Assistant U.S. Attorneys Fatime Meka Cano, Matthew Stark, and Peter A. Laserna prosecuted the case with support from the Justice Department’s Tax Division.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is part of a national initiative by the Department of Justice targeting large-scale pandemic relief fraud involving criminal organizations across state lines. These strike forces use interagency teams led by prosecutors and data analysts to identify those responsible for misusing pandemic funds.
Individuals with information about suspected COVID-19 fraud are encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit information online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
“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.”
“The government is represented by Assistant U.S. Attorney Fatime Meka Cano, Matthew Stark, and Peter A. Laserna of the U.S. Attorney’s Office Criminal Division in Newark. Substantial assistance was provided by the U.S. Justice Department’s Tax Division.”
“The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.”
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Defense Counsel for Haynes: Michael Koribanics, Esq., and Vando Cardoso, Esq.
