Criminal Tax Media Releases


RELEASED: September 12, 2001

TRUCKING COMPANY & OFFICERS FINED AND RESTITUTION ORDERED 

Tax Director Marie Okamura announced that on September 12, 2001, Circuit Court Judge Gail Nakatani sentenced Kam's Express Inc, Thomas W.K. Kam and Herbert W.S. Kam to fines totaling $12,000 and ordered restitution of $476,556.
    
During the sentencing phase, Deputy Attorney General Rick Dammerville recommended the Court sentence Thomas and Herbert Kam to 30 days in jail and fine each $10,000 and to impose a fine of $240,000 to the corporation.  The Court was made aware that in 1997, Thomas and Herbert Kam had wages paid to them of about $30,900 and also had company checks paid to them in excess of $321,000 which were for the most part cashed.  Despite their egregious conduct, the Court did not find sufficient cause to sentence either to jail.

The Court imposed a fine of $10,000 to Kam's Express Inc. for not filing its Public Service Company tax returns for the years 1995, 1996 and 1997.  Kam's Express, Inc., had gross receipts of $7,887,947 for the  years 1995, 1996 and 1997.  

The Court did not impose any fine for the corporation's failure to file its annual withholding tax returns for the 1995, 1996 and 1997 years.  The corporation had withheld over $208,000 from its employees and did not pay over the taxes withheld to the tax department.  

Thomas W.K. Kam was fined $1,000 for theft in the second degree by knowingly causing to file a materially false income tax return for the 1997 tax year.  Judge Nakatani ordered Thomas Kam to repay the $2,308 tax refund he fraudulently obtained.  Judge Nakatani also denied Thomas Kam's request for a deferral of the guilty plea and placed him on probation for a period of 5 years.

Herbert W.S. Kam was fined $1,000 for theft in the second degree by knowingly causing to file a materially false income tax return for the 1997 tax year.  Judge Nakatani ordered Herbert Kam to repay the $1,344 tax refund he fraudulently obtained.  Judge Nakatani also denied Herbert Kam's request for a deferral of the guilty plea and placed him on probation for a period of 5 years.
     
In accordance with a plea, the Court imposed restitution of $7,500 a month for the repayment of the taxes not paid for a period of 5 years.  The restitution was jointly and severally liable to Thomas Kam, Herbert Kam and Kam's Express, Inc.

 Tax Director Okamura continues to encourage taxpayers to voluntarily file their tax returns.  The department will generally not initiate a criminal investigation when taxpayers voluntarily come forward to report their failure to file or other omissions. 

# # # #