HONOLULU, HI – A federal jury convicted four Hawaii residents this week for their roles in a tax refund fraud scheme that resulted in more than $1 million in fraudulent refunds from the Internal Revenue Service.
According to court documents and trial evidence, from January 2015 through September 2018, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired to defraud the United States by filing false individual tax returns and other documents claiming fraudulent withholdings from mortgage lenders. The IRS issued refunds based on the false filings.
The conspirators attempted to conceal the funds from the government by creating trusts, opening new business and trust bank accounts, and moving the proceeds between accounts. Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the refunds through bank transactions, while Dumlao and Daniel Miranda also filed for bankruptcy and made false statements under oath.
All four were convicted of conspiracy to defraud the United States. Additional convictions included money laundering against Lastimado-Dradi, Dumlao, and Elvah Miranda; filing a false tax return against Elvah Miranda; aiding and assisting in the preparation of false tax returns against Lastimado-Dradi; and making false statements under oath against Dumlao and Daniel Miranda. Dumlao and Daniel Miranda were acquitted on some charges.
Sentencing is scheduled for Jan. 26 for Lastimado-Dradi and Dumlao, and Jan. 27 for Elvah and Daniel Miranda. Each faces up to five years in prison for conspiracy, with additional penalties of up to 10 years for money laundering, five years for making false statements, and three years for filing or assisting in the preparation of false tax returns.
The case was investigated by IRS Criminal Investigation. Trial Attorneys Sarah A. Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Gregg Paris Yates of the District of Hawaii, are prosecuting the case.
