Criminal Tax Media Releases (2)


RELEASED: November 7, 2001

HONOLULU VIDEO STORE & FORMER OWNER PLEAD "NO CONTEST"

Tax Director Marie Okamura announced that District Court Judge Russell Nagata accepted "no contest" pleas from Nippon Video, Inc. for failing to file its annual general excise tax returns for the three fiscal years ending March 1996, March 1997, and March 1998.

Mr. Nobukatsu Naito, the responsible corporate officer, also pled "no contest" for not filing the annual general excise tax returns for the corporation for those fiscal years.

Mr. Naito is the former president and director of the corporation.  The corporation was in the business of renting and selling video tapes.  

In a plea agreement, Mr. Naito agreed to become jointly and severally liable with Nippon Video, Inc., for its delinquent general excise taxes due for the periods ended 3/31/96, 3/31/97, and 3/31/98.  Mr. Naito was also ordered to pay a fine of $1,000 per year for the non filed years for a total fine of $3,000.
The penalties provided by law is a misdemeanor and upon conviction thereof, shall be fined not more than $25,000 or imprisoned not more than one year, or both; provided that a corporation shall be fined not more than $100,000 for each year.

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. 


RELEASED: November 6, 2001

RB TAX RETURN PREPARER IS FINED $10,000

Tax Director Marie Okamura announced that on Nov 6, 2001, Judge Michael Town sentenced Ms. Dina Caleda, a tax return preparer for RB Tax Service to a fine of $10,000 and placed on probation for 5 years.  Ms. Caleda was also ordered to perform 200 hours of community service and write a personal letter of apology to Marie Okamura, Director of Taxation for her crimes.  The defense counsel also requested a Deferred Acceptance of Guilty Plea (DAG) which was denied by the Court.  As a result of the denial of the DAG, Ms. Caleda's conviction as a felon will stand.

In a plea agreement, Ms. Caleda pled guilty to six felony counts of aiding in the preparation of false income tax returns.  In two of the counts, the returns prepared claimed the Foreign Earned Income Tax Exclusion under the premise that Hawaii was not a State.  The remaining four counts were returns where the itemized deductions claimed were excessive and fictitious.  In the plea agreement, Ms. Caleda was faced with incarceration of up to 6 months and fines of $30,000.

Other tax return preparers of RB Tax Services, namely, Richard Basuel II and Rosalinda DeGuzman are scheduled to be sentenced on Nov 13, 2001 and Nov 20, 2001, respectively.  Both pled guilty to multiple felony counts of preparing false tax returns.  Another return preparer at RB Tax Services, Vivian Soong was recently indicted and she will be arraigned within the month for multiple felony violations.

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. 

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