Justice Dept. Takes Nationwide Action Prosecuting $260M COVID Relief and Disability Fraud Schemes
Department of Justice's National Fraud Enforcement Division (NFED) announced major prosecutorial actions across multiple federal districts targeting fraudulent schemes to obtain more than $260 million in taxpayer-funded COVID-19 relief and Social Security Disability benefits. The operations seek to hold perpetrators accountable for stealing government funds. In the District of New Jersey, tax preparer Leon Haynes, age 52, from Teaneck, was sentenced to 12 years imprisonment and ordered to pay over $55 million restitution after a six-day jury trial. Haynes was convicted of 15 counts of aiding and assisting in the preparation of false tax returns, mail fraud, and tax evasion related to $170 million in fraudulent COVID-19 tax refund claims. This case marks the largest COVID-19 tax relief fraud trial in the U.S. to date. In the District of Colorado, Ikponmwosa Erhinmwinrose, 39, and Nyerhovwo Presley Agbure, 34, both of Atlanta, Georgia, were sentenced for their roles in a fraud ring that applied for more than $90 million in government benefits and stolen approximately $7.6 million from the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, state unemployment insurance programs including Colorado's, and tax refunds. Erhinmwinrose received a 17-year prison sentence; Agbure received 57 months. The Middle District of Florida announced Viviana Barnwell's two-year prison sentence for misappropriating Social Security disability benefits paid to her adult son. Despite her son being reported missing in 2016, Barnwell concealed his death from the Social Security Administration and withdrew benefits totaling $96,186 for personal use. In the Eastern District of Missouri, Scott A. Taylor, owner of a fossil replica business and on probation for a prior Social Security disability fraud conviction, was indicted for falsifying claims to continue receiving disability benefits. He pleaded guilty in 2025 to theft of government funds and was sentenced to five years probation with an order to repay $106,923. The new indictment alleges false claims made in January 2026 regarding his work status since 1993. Assistant Attorney General Colin McDonald emphasized NFED's commitment to aggressively pursuing individuals who steal taxpayer funds. The division coordinates with multiple agencies and law enforcement levels to detect, investigate, and prosecute fraud targeting federal benefit programs. The Justice Department's activities also align with the effort led by a presidential task force chaired by the Vice President aimed at eliminating fraud, waste, and abuse within federal benefit systems. Additional prosecution updates include a Mexican national's guilty plea in a multimillion-dollar trade-based money laundering conspiracy, the arrest and grand jury indictment of Courtney Williams in North Carolina related to transmission of classified information, and a Massachusetts woman's guilty plea in a sex trafficking conspiracy. However, these cases are separate and not included in the $260 million fraud enforcement figures. All defendants are presumed innocent until proven guilty unless convicted as noted. The Justice Department reaffirmed its resolve to safeguard taxpayer resources through continued enforcement and collaboration with partner agencies nationwide.
