Washington Township Man Admits to $1.4 Million Tax Fraud and Theft from Elderly Customer

James J. Mastrogiovanni pleaded guilty to conspiracy, mail fraud, and financial crimes related to pandemic relief abuse and unauthorized withdrawals from an elderly victim’s account.

A Gloucester County resident has pleaded guilty to federal charges involving a multi-faceted fraud scheme that exploited COVID-19 tax relief programs and included the theft of more than $180,000 from an elderly individual, U.S. Attorney Alina Habba announced this week.

James J. Mastrogiovanni, 44, of Washington Township, admitted to conspiring to defraud the United States, mail fraud, money laundering, and access device fraud. The guilty plea follows an investigation revealing Mastrogiovanni’s participation in a false tax credit scheme and a separate case of financial exploitation targeting an 85-year-old customer at a car dealership where he worked. His sentencing is scheduled for November 6, 2025.

Between March 2021 and December 2022, Mastrogiovanni collaborated with Leon Haynes, a tax preparer, to file fraudulent IRS Forms 941, which are typically used by businesses to claim employment tax credits. The filings, submitted in the names of Mastrogiovanni, his relatives, and others, falsely claimed over $1.4 million in COVID-19-related tax refunds. In reality, none of the named individuals operated businesses or had employees. The U.S. Treasury disbursed over $545,000 in refunds due to these filings.

Haynes, charged separately in a broader 63-count indictment, is accused of filing more than 1,600 false tax returns totaling over $150 million. His trial is slated for September 25, 2025. Authorities allege he used clients’ identities without consent to submit fraudulent applications. He remains presumed innocent until proven guilty.

In a separate incident spanning from June to December 2023, Mastrogiovanni misappropriated over $180,000 from an elderly customer. After receiving a check from the victim for the purchase of a vehicle, he used the account and routing numbers to initiate unauthorized personal transactions, depleting the victim’s account.

The charges against Mastrogiovanni carry significant penalties: up to five years in prison for conspiracy to defraud the U.S., 20 years for mail fraud, and 10 years each for money laundering and access device fraud. Each count includes potential fines of up to $250,000.

The case was investigated by agents from the IRS Criminal Investigation Division, the Social Security Administration’s Office of the Inspector General, the U.S. Postal Inspection Service, and the Mahwah Police Department.

Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark are prosecuting the case. The matter falls under the purview of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five strike forces established nationwide to address large-scale pandemic-related financial fraud.

The Department of Justice continues to urge individuals with knowledge of COVID-19 fraud to report it via the National Center for Disaster Fraud Hotline at 866-720-5721 or through its online complaint form.