NJ Tax Preparer Gets 12 Years in Massive $170M COVID Fraud Case

A New Jersey tax preparer who sought more than $170 million in fraudulent COVID-related tax refunds has been sentenced to over a decade behind bars.

This past November, a jury convicted 52-year-old Leon Haynes of Teaneck of 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 in what has been cited as the largest COVID tax relief fraud case that has been tried so far in the country.

On Wednesday, he was sentenced to 12 years in prison and five years of supervised release.

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Prosecutors: Scheme Sought Over $170 Million

Federal authorities said that from November 2020 through May 2023, Haynes orchestrated a massive scheme to exploit COVID-related tax credits for personal gain. Prosecutors said he, and sometimes working with others, prepared and submitted more than 1,900 false employment tax returns to the IRS, claiming fraudulent COVID-related tax credits for himself and his clients.

Haynes and his co-conspirators fraudulently sought more than $170 million in tax refunds on behalf of his own businesses and his clients, causing the government to pay over $55 million in refunds.

Authorities said throughout the scheme, Haynes also charged clients a percentage of the refund checks as his fee and requested cash payments. He then failed to report the money he received from his clients, thereby evading his own taxes.

In addition to the prison sentence, Haynes was also ordered to pay more than $55 million in restitution to the IRS.

Chris Coleman is a South Jersey native and has been a cornerstone of the Atlantic City radio market since 1998. He serves as Brand Manager for WPG Talk Radio 95.5 and afternoon on-air personality for Cat Country 107.3. A five-time President's Circle award winner and Townsquare Media's 2024 Content Creator of the Year, Chris covers news, events, and stories of interest across Southern New Jersey. Story tips: chris.coleman@townsquaremedia.com