The U.S. Department of Justice announced a series of prosecutions across four states targeting fraud schemes that collectively attempted or succeeded in stealing more than $260 million in taxpayer-funded benefits.
Officials with the Justice Department’s National Fraud Enforcement Division said the cases highlight a renewed effort to investigate and prosecute individuals accused of exploiting federal relief programs and public benefits.
In New Jersey, tax preparer Leon Haynes was sentenced to 12 years in prison after seeking more than $170 million in fraudulent COVID-19-related tax refunds. Following a jury trial, he was convicted on multiple counts including preparing false tax returns, mail fraud, and tax evasion. He was also ordered to pay more than $55 million in restitution.
In Colorado, two men connected to a nationwide fraud ring received prison sentences for their roles in schemes involving pandemic-era relief programs. Prosecutors said the group applied for over $90 million in benefits and successfully obtained more than $7.6 million through programs such as the Paycheck Protection Program and unemployment insurance systems.
In Florida, a woman was sentenced to two years in prison for continuing to collect and spend Social Security disability benefits belonging to her son, who had been missing since 2016. Authorities said she concealed his death while using the funds for personal expenses.
Meanwhile, in Missouri, a business owner already on probation for a prior fraud conviction was indicted again for allegedly attempting to obtain Social Security disability benefits under false claims.
Justice Department officials emphasized that the newly established National Fraud Enforcement Division will coordinate across agencies and jurisdictions to identify and prosecute fraud involving taxpayer dollars.
Authorities noted that all defendants are presumed innocent unless proven guilty in court.
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