February 2, 2001
For Immediate Release
P R E S S R E L E A S E
A federal grand jury returned an indictment yesterday charging VICTOR H. ZUERCHER with evasion of tax payments and subscribing a false return. According to the four count indictment, one evasion offense in violation of 26 USC Section 7201 resulted from ZUERCHER filing personal Form 1040 Individual Income Tax Returns for 1985, 1986, 1990, 1993, 1994, 1995, 1996 and 1997, which returns established a self-assessed tax liability of approximately $55,000 and then willfully attempting to evade and defeat the payment of that self-assessed tax due and owing to the United States of America and attempting to file false forms with the IRS. The second evasion offense is based on allegations that ZUERCHER filed false corporate tax returns for O.B., Inc., a nominee corporation controlled by him, for the years 1991, 1992, and 1993, resulting in an additional tax liability.
Steven S. Alm, United States Attorney for the District of Hawaii, and Victor Song, Special Agent in Charge for the Internal Revenue Service Criminal Investigation Division, said that the indictment returned today alleges that ZUERCHER worked with the IRS to negotiate an income tax settlement from November 1987 through September 1996, while allegedly hiding the extent of his financial resources. Also, according to the indictment, ZUERCHER filed a false Form 433-A, Collection Information Statement for Individuals, and Form 433, Statement of Financial Condition and Other Information, in which he failed to disclose in either form his interest in O.B. Inc., in violation of 26 USC Section 7206(1).
If convicted of the charges, ZUERCHER faces maximum penalties of five years imprisonment and a fine of $250,000 for each of the two counts of evasion (Section 7201), and three years imprisonment and a fine of $250,000 for each of the two counts of subscribing to a false return (Section 7206(1)). The length of the terms of imprisonment actually imposed are also determined by the federal Sentencing Guidelines.
United States Attorney Alm cautioned that an indictment is merely an accusation, and that each defendant is presumed innocent unless and until proven guilty.
The indictments were the result of an investigation conducted by the Criminal Investigation Division of the Internal Revenue Service. The prosecution is being handled by Assistant United States Attorney Leslie E. Osborne, Jr.
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