Canadian Man Pleads Guilty To Conspiring To Defraud The United States And Steal Government Funds

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

ROCHESTER, NY, – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that Jose Compuesto, 52, of Mississauga, Ontario, Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison. As part of his plea agreement, Compuesto agreed to pay restitution to the IRS in the amount of $383,155.46 plus interest.

According to Assistant U.S. Attorney John J. Field and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are handling the case, the defendant, along with other Canadian citizens, participated in a scheme to file fraudulent claims for refund with the Internal Revenue Service (IRS). In January 2010, Compuesto filed a fraudulent nonresident alien income tax return seeking a refund of $383,155.46. On this return, Compuesto falsely claimed that the requested refund represented the amount of income taxes that had been withheld and paid to the IRS on his behalf. After the IRS issued the refund to Compuesto, he entered the United States and opened a bank account in Kenmore, NY to deposit the fraudulently obtained check. In April 2010, Compuesto caused the funds to be transferred from this account to bank accounts in the United States and Canada in the name of one of his co-conspirators.

Compuesto is the fourth Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and steal government funds, making a false claim against the United States and transferring stolen money in foreign commerce. In June 2014, Renee Jarvis, also of Ontario, pleaded guilty to conspiring to defraud the United States and steal government funds. Last month, Timothy Johnston of Calgary, Alberta also pleaded guilty to conspiring to defraud the United States and steal government funds.  Jarvis and Johnston are both awaiting sentencing.

The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office.

Sentencing is scheduled for October 17, 2017, at 3:30 p.m. before Judge Geraci.