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Fraud

Four Individuals Convicted in Hawaii for Tax Refund Fraud Scheme

Strategic Insights

— 1 min read

A federal jury has convicted four individuals from Hawaii in a tax refund fraud scheme, according to court documents. The scheme involved filing fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders, resulting in substantial refunds from the IRS. The defendants conspired to defraud the United States, laundered the fraudulently obtained refunds, and made false statements under oath in relation to their bankruptcy proceedings. All the defendants were found guilty of various charges, including conspiracy to defraud the United States, money laundering, and making false statements under oath.

Key Takeaways:

  • The tax refund fraud scheme involved four individuals from Hawaii, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda, who conspired to defraud the United States from at least January 2015 through September 2018.
  • The scheme resulted in the IRS issuing refunds totaling over $1 million.
  • The defendants created trusts, opened new bank accounts in the names of business entities and the trusts, and transferred the proceeds between the accounts to conceal them from the government.
  • Dumlao and Daniel Miranda each filed for bankruptcy and made false statements under oath in relation to their respective bankruptcy proceedings.
  • All the defendants were found guilty of conspiracy to defraud the United States, with the jury also finding Lastimado-Dradi, Dumlao, and Elvah Miranda guilty of money laundering.
  • Daniel Miranda and Dumlao were found guilty of making false statements under oath in a bankruptcy proceeding.
  • Elvah Miranda was also found guilty of filing a false tax return, and Lastimado-Dradi was found guilty of aiding and assisting in the preparation of false tax returns.
  • The defendants face various maximum penalties, including up to 10 years in prison for each count of money laundering.

Statistics:

  • The scheme resulted in the IRS issuing refunds totaling over $1 million.
  • The defendants conspired to defraud the United States for approximately 3.5 years, from at least January 2015 through September 2018.
  • The maximum penalty for conspiracy to defraud the United States is 5 years in prison.
  • The maximum penalty for each count of money laundering is 10 years in prison.
  • The maximum penalty for filing a false tax return is 3 years in prison.
  • The maximum penalty for making false statements under oath in a bankruptcy proceeding is 5 years in prison.

Sources:

  • United States Attorneys General
  • IRS Criminal Investigation
  • Tax Division, U.S. Department of Justice
  • District of Hawaii, U.S. Department of Justice

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