By: Richard L. Smith
A Washington Township man has admitted to orchestrating a series of fraudulent schemes, including submitting false tax returns to the IRS for over $1.4 million in pandemic-related credits and stealing more than $180,000 from an elderly customer, according to information released by the U.S. Department of Justice.
James J. Mastrogiovanni, 44, pleaded guilty to multiple federal charges, including conspiracy to defraud the United States, mail fraud, money laundering, and access device fraud. U.S. Attorney Alina Habba announced the plea, and sentencing is scheduled for November 6, 2025.
According to federal officials, between March 2021 and December 2022, Mastrogiovanni partnered with Leon Haynes, a tax preparer, to file a series of false IRS Forms 941.
These forms were intended to secure COVID-19 employment tax credits, which were created to support small businesses during the pandemic.
The filings listed fictitious employees and wages, despite neither Mastrogiovanni nor his family members operating any legitimate businesses or having employees.
As a result of the fraudulent filings, the U.S. Treasury disbursed approximately $545,692 to Mastrogiovanni and his family, from a total of more than $1.4 million in false claims.
Haynes, who is facing separate federal charges, is accused of submitting more than 1,600 fraudulent tax returns totaling over $150 million.
His trial is set for September 25, 2025. He remains presumed innocent unless proven guilty.
In an unrelated scheme, federal investigators revealed that between June and December 2023, Mastrogiovanni stole over $180,000 from an 85-year-old customer at the car dealership where he was employed.
After accepting a check for a vehicle purchase, Mastrogiovanni allegedly used the victim’s banking information to make a series of unauthorized withdrawals until the account was depleted.
Each of the four counts Mastrogiovanni pleaded guilty to carries significant penalties.
Conspiracy to defraud the United States is punishable by up to five years in prison and a $250,000 fine.
Mail fraud carries up to 20 years, while both the money laundering and access device fraud counts carry potential sentences of up to 10 years each, along with fines of up to $250,000 per charge.
Federal officials said the case highlights continued federal efforts to prosecute individuals who exploited emergency relief programs and targeted vulnerable victims during and after the COVID-19 pandemic.