On October 20, 2020, in the Eastern District of New York, Jose Andreu pled guilty to conspiracy to defraud the United States. Andreu and his coconspirators prepared and filed, for themselves and others, false Federal income tax returns. Andreu was initially charged in a six-count indictment on January 30, 2020.

According to the court documents, between approximately May 2011 and August 2017, Andreu and his coconspirators used Internal Revenue Service (IRS) Form 1099-OID (Original Issue Discount) and various other IRS forms to submit false Federal income tax returns. The Forms 1099-OID falsely reported that financial institutions, creditors, and other entities withheld Federal income tax on behalf of Andreu and his coconspirators. Based on these fictitious withholdings, Andreu prepared and filed false Federal income tax returns to claim tax refunds that Andreu and his coconspirators were not entitled to receive. The IRS sent Andreu notices that the information filed was frivolous. Despite receiving these notices, Andreu continued to file false Federal tax forms. In one instance, Andreu filed a fraudulent income tax return that claimed a refund of $135,399.

At sentencing, Andreu could receive a maximum penalty of five years' imprisonment for conspiracy to defraud the United States. Sentencing is scheduled for February 24, 2021.

Source:  The facts in this case narrative come from the following publicly available documents: E.D.N.Y., Plea, October 20, 2020, and E.D.N.Y., Indict., January 30, 2020.