DOJ Highlights Largest COVID Tax Fraud Case Tried to Date as Crackdown Spans Multiple States
The Department of Justice (DOJ) announced actions on fraud cases in several states. That includes the largest COVID-19 tax relief fraud case to be tried to date and a series of Social Security fraud cases.
“A Personal Cash Machine”
In New Jersey, a tax preparer was sentenced to 12 years in prison and ordered to pay $55 million in restitution in the largest COVID-19 tax relief fraud case tried to date.
Leon Haynes was convicted 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.
Prosecutors say Haynes prepared, submitted, and worked with others to prepare and submit more than 1,900 false employment tax returns to the IRS to claim COVID-related tax credits on behalf of himself and his clients. Prosecutors say most of the tax forms claimed a false number of employees and fabricated wages. While the conspirators sought more than $170 million, they collected over $55 million in refunds.
“Haynes—a tax preparer entrusted to help people comply with the law—treated those programs as a personal cash machine,” said U.S. Attorney for the District of New Jersey Rob Frazer.
$7.6 Million Stolen in Colorado Case
In a second pandemic fraud case tried in Colorado, two men from Georgia were sentenced for their role in a fraud ring that stole millions of government funds from thousands of people nationwide.
Prosecutors say the men applied for more than $90 million in government benefits and stole more than $7.6 million from federal and state programs, including Colorado's unemployment insurance program.
Prosecutors say the conspirators used stolen identities to submit fraudulent applications and then instructed a network to launder the proceeds.
Ikponmwosa Erhinmwinrose was sentenced to 17 years while Nyerhovwo Presley Agbure was sentenced to 57 months.
Two other men are awaiting sentencing.
Social Security Fraud Cases
It’s not just pandemic fraud. The DOJ also announced actions against a woman in Florida and a man in Missouri for defrauding the Social Security Administration (SSA).
In Florida, Viviana Barnwell was sentenced to two years in prison for hiding her adult son’s disappearance from SSA and continuing to collect his disability benefits.
Prosecutors say Barnwell’s son disappeared in 2016 and remains missing to this day. Despite reporting his disappearance to local police, Barnwell never reported the incident to SSA and continued to collect monthly benefit payments, using about $96,000 for her own use.
Barnwell pleaded guilty to aggravated identity theft and access device fraud.
And in Missouri, the owner of a fossil replica company was indicted for fraudulently seeking disability benefits.
The indictment accuses Scott A. Taylor of applying for Social Security disability benefits in January 2026, falsely claiming that he had not worked since 1993.
Taylor is still on probation from a prior disability fraud case, where he was ordered to pay nearly $107,000 in restitution to SSA.
“Individuals who exploit disability programs for personal gain undermine critical support intended for those who truly need it,” said Special Agent-in-Charge Chancellor Melvin, SSA Office of Inspector General, Chicago Field Division.
