Middlesex County Man Gets 15 Months In Prison For Tax Fraud

MIDDLESEX COUNTY, NJ — A Middlesex County man was sentenced to 15 months in prison for his role in a conspiracy to submit false claims to the IRS by filing fraudulent tax returns, the IRS Criminal Investigation Newark Field Office said.

Luis Crespo, 43, of Sayreville, was sentenced on Wednesday. He will also serve three years of supervised release and pay $510,668 in restitution, ruled U.S. District Court Judge Anne E. Thompson.

Crespo previously pleaded guilty to count one of a three-count indictment that was handed out by a grand jury on Aug. 27, 2020.

According to documents and statements made in court, Crespo was part of a conspiracy led by Michael Watsey, who schemed to file false claims or false tax returns in 2016 and 2017.

Watsey created false Forms W2-G, which showed significant gambling winnings and federal tax withheld, according to court documents.

These false Forms W2-G showed gambling winnings to Crespo, authorities said. For tax years 2016 and 2017, Crespo filed income tax returns with the IRS that included the false Form W-2Gs that requested a total of $508,787 in federal tax refunds, according to court documents. Based on this, the IRS paid Crespo tax refunds totaling approximately $510,668, authorities said.

The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez and the U.S. Attorney’s Office, under the direction of U.S. Attorney Philip R. Sellinger.

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