By: Richard L. Smith
A New Jersey tax preparer has been sentenced to 12 years in federal prison for orchestrating a massive fraud scheme tied to COVID-19 relief programs, according to information sent by the U.S. Attorney’s Office.
Leon Haynes, 52, of Teaneck, was sentenced in federal court in Newark to 144 months behind bars, followed by five years of supervised release. He was also ordered to pay more than $55 million in restitution to the IRS.
Federal officials said Haynes was convicted following a jury trial of multiple charges, including preparing false tax returns, mail fraud, and tax evasion.
Authorities described the case as the largest COVID-19 tax relief fraud scheme brought to trial in the country to date.
According to prosecutors, Haynes exploited pandemic-era tax credit programs designed to help struggling businesses by filing more than 1,900 fraudulent employment tax returns between 2020 and 2023.
The filings allegedly included false claims about employees and wages in order to secure refunds.
Investigators determined the scheme sought more than $170 million in refunds, with over $55 million actually paid out.
Officials said Haynes also took a percentage of the refunds from clients and failed to report that income on his own taxes.
Federal authorities emphasized that pandemic relief programs were intended to support individuals and businesses during a national emergency, not to be used for personal gain.
The case was handled in U.S. District Court under Judge William J. Martini.