Leon Haynes convicted by jury on all 18 counts after submitting over 1,900 false employment tax returns claiming over $170 million in fraudulent COVID-era tax credits, of which the government paid out over $55 million.

Leon Haynes — $170M ERC Tax Credit Fraud Scheme, New Jersey (2020–2023)

Outcome: Haynes convicted November 19, 2025 by jury on all 18 counts including 15 counts aiding and assisting false tax returns, mail fraud, and tax evasion; sentencing scheduled March 12, 2026.

Leon Haynes of Teaneck, New Jersey operated a tax preparation business and from November 2020 through May 2023 prepared and submitted over 1,900 false employment tax returns claiming COVID-19-related tax credits—specifically the Employee Retention Credit and Paid Sick and Family Leave Credits. The returns contained fabricated statements about employee counts and wage amounts. The fraudulent refunds sought exceeded $170 million; the government actually paid out over $55 million before the scheme was stopped.

Haynes charged clients a percentage of refunds received, creating a powerful incentive structure to maximize fabricated credit amounts. He failed to report this fee income on his own personal tax returns, constituting a separate tax evasion offense layered on top of the client fraud.

The case was tried over six days before U.S. District Judge William J. Martini in the District of New Jersey, resulting in a guilty verdict on all counts on November 19, 2025. The case was investigated by IRS Criminal Investigation and prosecuted by the U.S. Attorney's Office for the District of New Jersey.

This prosecution represents one of the largest individual ERC fraud cases charged in the United States, underscoring the systemic vulnerability created when high-value tax credits are administered without real-time payroll verification.

Primary Source: New Jersey Tax Preparer Convicted for $170 Million COVID-19 Tax Credit Scheme