NEWARK—A Teaneck tax preparer at the center of what federal authorities say is the largest COVID-19 tax fraud case ever tried has been sentenced to 12 years in prison, officials announced Wednesday.

Leon Haynes, 52, of Teaneck, was sentenced in federal court after being convicted on multiple charges tied to a sweeping scheme that sought more than $170 million in fraudulent COVID-era tax refunds.

Federal authorities first arrested and charged Haynes in July 2023, alleging he had already sought more than $124 million in fraudulent tax refunds tied to pandemic-era relief programs. Investigators said he initially filed more than 1,300 false tax returns and misled clients into believing they qualified for COVID-related tax credits.

A federal grand jury later returned a broader indictment in 2024, expanding the scope of the case and alleging that Haynes ultimately sought more than $150 million through the scheme.

By the time of trial, prosecutors said the scheme had grown to more than 1,900 false tax returns filed between November 2020 and May 2023. Authorities said Haynes fabricated employees, wages, and financial information to claim pandemic-related credits, often collecting fees and a percentage of the refunds.

While the scheme sought more than $170 million, the Internal Revenue Service paid out more than $55 million before the fraud was uncovered.

Following a six-day jury trial in November 2025, Haynes was convicted of 15 counts of aiding and assisting in the preparation of false tax returns, along with mail fraud and tax evasion charges.

He was sentenced to 144 months in prison by U.S. District Judge William J. Martini in Newark federal court. The sentence also includes five years of supervised release and more than $55 million in restitution.

U.S. Attorney for the District of New Jersey Robert L. Frazer said the case highlights the scale of abuse tied to pandemic relief programs.

“Haynes treated COVID-19 relief programs as a personal cash machine,” Frazer said in a statement. Federal officials described the case as the largest COVID-19 tax fraud prosecution brought to trial in the country to date.

The sentencing was part of a broader nationwide enforcement effort targeting more than $260 million in fraud tied to COVID relief and federal benefit programs. Authorities said the investigation involved IRS Criminal Investigation, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service. 

Officials say enforcement efforts remain ongoing as the federal government continues to pursue individuals accused of exploiting pandemic-era financial assistance programs.

Sources

• U.S. Attorney’s Office, District of New Jersey (April 8, 2026)

• U.S. Department of Justice, Office of Public Affairs (April 8, 2026)

• U.S. Attorney’s Office, District of New Jersey (July 2023 Arrest Release)