October 20, 2003
For Immediate Release
P R E S S R E L E A S E
Edward H. Kubo, Jr., United States Attorney for the District of Hawaii, and Eileen J. O'Connor, Assistant Attorney General of the United States Department of Justice Tax Division, in Washington, D.C., announced that Dr. VICTOR H. ZUERCHER, JR., a 62 year-old practicing dentist and resident of Honolulu, Hawaii, entered a plea of guilty today to one count of federal income tax evasion (26 U.S.C. § 7201) before Senior United States District Court Judge Edward Rafeedie.
Previously, on October 10, 2003, co-defendant PETER PAUL VIRDONE, a 61 year-old licensed Certified Public Accountant (CPA) and income tax preparer in the State of Hawaii, entered a plea of guilty to one count of federal income tax evasion (26 U.S.C. § 7201) and with a tax loss totaling $156,982.00 for all applicable state and federal income taxes due and owing as a result of the charged conduct. Both men were previously charged by a federal grand jury for their roles in the knowing concealment of income and assets from the Internal Revenue Service and the State of Hawaii by filing false federal and state income tax returns, falsifying corporate books and records, creating a nominee corporation in which to hide assets, and causing false and fraudulent statements to be filed with an IRS collection officer to further conceal income.
In written plea agreements and in open court, each man has now admitted responsibility for his role in a long-running tax evasion scheme designed to willfully evade and defeat the payment of taxes owed to the United States of America and State of Hawaii for the calendar years 1985, 1986, 1990, 1993, 1994, 1995, 1996 and 1997.
Defendants VIRDONE and ZUERCHER each face a maximum penalty of five (5) years of imprisonment, a $250,000 fine, payment of the costs of prosecution, and a three (3) year term of supervised release when sentenced on January 26, 2004. The actual term of imprisonment is further determined by federal Sentencing Guidelines.
This criminal investigation was conducted by the Internal Revenue Service,
Criminal Investigation, United States Department of Treasury. The prosecution
has been handled by Trial Attorneys Edward E. (Ted) Groves and Kevin M.
Downing of the United States Department of Justice, Tax Division, Western
Criminal Enforcement Section, Washington, D.C.
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