New Jersey Tax Official Convicted for Fraudulently Securing COVID-19 Tax Refunds
A federal jury has found a New Jersey tax official guilty of orchestrating a scheme that defrauded the IRS out of over $170 million through fraudulent COVID-19 tax refunds, as announced by Acting U.S. Attorney Alina Haba.
Leon Haynes, 52, from Teaneck, faces multiple convictions including 15 counts of aiding in the preparation of false tax returns, one count of mail fraud, and two counts of tax evasion. His conviction came after a six-day trial led by U.S. District Judge William J. Martini in Newark, with sentencing scheduled for March 12, 2026.
Evidence revealed that Haynes exploited the Employee Retention Credit and the Sick and Family Leave Credit programs—financial support created by Congress to assist small businesses during the pandemic—to execute a large-scale fraudulent operation.
Between November 2020 and May 2023, he reportedly helped prepare more than 1,900 false employment tax returns. Prosecutors noted that these documents often contained fabricated employee numbers and falsified wages, enabling Haynes to secure significant tax refunds.
Interestingly, many of these claims were submitted on behalf of his own business, along with customers who paid him fees based on the refunds received.
The scheme aimed to claim over $170 million in refunds and successfully extracted more than $55 million from the U.S. Treasury before it was scrutinized. Compounding the issue, Haynes failed to report considerable cash payments from customers, which only worsened his tax evasion situation.
Each count related to aiding or abetting false tax return preparation carries a potential maximum penalty of three years in prison along with a $250,000 fine. Meanwhile, the mail fraud charges could lead to up to 20 years’ imprisonment, with additional penalties for tax evasion.
As of now, Haynes awaits sentencing while federal authorities work to reclaim misappropriated pandemic relief funds and ensure justice for those who exploited the emergency program established during a challenging time for many.
