February 12, 2004
For Immediate Release
P R E S S R E L E A S E
A federal grand jury in Honolulu, Hawaii, returned a 148-count indictment today against five employees of RB Tax Service, RICHARD JAMES BASUEL, RICHARD JAMES BASUEL II, DINA GRACE NAUI CALEDA, ROSALINDA I TAMAYO (fka Rosalinda DeGuzman) and VIVIAN WAI WON SOONG with tax-related offenses. Each defendant was charged with one count of conspiracy to defraud the United States by obstructing the function of the Internal Revenue Service in the collection of tax. In addition to the conspiracy charge, BASUEL was charged with 46 counts, BASUEL II with 21 counts, CALEDA with 26 counts, TAMAYO with 24 counts, and SOONG with 30 counts of willfully preparing false tax returns and aiding and abetting in the preparation of false tax returns.
According to United States Attorney Edward H. Kubo, Jr., the indictment alleges that between January 25, 2000 and April 5, 2000, BASUEL, BASUEL II, CALEDA, TAMAYO and SOONG prepared and submitted false 1997, 1998 and 1999 federal tax returns on behalf of their clients, knowing they were fraudulent and false as to a material matter.
The indictment alleges that all five return preparers promoted a "new way" of preparing tax returns to their clients in which they disguised income earned in Hawaii as foreign earned income. In most instances, application of their "new way" of preparing returns resulted in a reported adjusted gross income of zero and a refund of all of the client's federal tax withholdings.
BASUEL, BASUEL II, CALEDA, TAMAYO and SOONG, according to the indictment, caused in excess of 900 false returns to be filed and falsely claimed in excess $4,000,000 in federal tax refunds from the United States government.
If convicted on the conspiracy count, each defendant faces a maximum penalty of five years in prison and a fine of $250,000. Each count charging the willful preparation of false tax returns carries a maximum penalty of three years in prison and a fine of $250,000. The precise sentence, if convicted, will be determined pursuant to the U.S. Sentencing Guideline.
United States Attorney Kubo cautioned that an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Honolulu Office of the Internal Revenue
Service, Criminal Investigation. The prosecution is being handled by Assistant
U.S. Attorney Leslie E. Osborne, Jr.
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