Sayreville Man Admits To Tax Fraud On Gambling Earnings

SAYREVILLE, NJ — A Sayreville man pleaded guilty in federal court last Thursday to filing false tax returns to the IRS.

Luis Crespo, 43, of Sayreville, NJ, pleaded guilty to one count of conspiring to submit false claims to the IRS.

He had previously been indicted by a grand jury on Aug. 27 on three counts of filing false tax returns.

IRS agents say Crespo was part of a conspiracy led by another man, Michael Watsey, who orchestrated a scheme to file false claims in 2016 and 2017.

IRS agents say Watsey created false W2-G forms, which showed federal tax withheld on "significant" gambling winnings for Crespo. Federal agents say Watsey gave these bogus W2-G forms to Crespo.

The IRS did not say how much Crespo claimed he won, but it was a big enough sum that he asked the government pay him back $508,787 in federal tax refunds for years 2016 and 2017, using the fake W-2G forms.

Based on the false returns that he filed, the IRS paid Crespo tax refunds totaling approximately $510,668, money that he will have to return.

Crespo is facing a maximum prison sentence of 10 years and fines as high as $250,000. He will be sentenced January 28.

He was represented by lawyer John Holliday of Trenton.

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