March 23, 2005
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, announced that a federal grand jury returned an 11-count indictment today charging KENNETH CHIO HENG IONG, a resident of Honolulu, Hawaii, with tax evasion for the years 1997, 1998 and 1999; providing false statements to financial institutions; and document fraud.
According to the indictment, Iong under reported his taxable income by over $739,000 during the three-year period and evaded taxes totaling over $243,000. The indictment also alleges that Iong reported to the Internal Revenue Service only a total of $67,248 in taxable income for those years.
The indictment further charges that Iong made false statements to various financial institutions by way of fictitious invoices to cause these institutions to provide funds for the alleged purchase or lease of equipment and services. Also indicted was DOROTHY CHIU LAI YUNG, a resident of Honolulu, Hawaii, for aiding Iong in one of the false statements. Iong is named in seven of the false statement counts, and Yung is charged with one false statement charge.
The indictment also charges Iong with possessing a fraudulent document, an alleged Republic of Costa Rica passport, that contained a photo of himself with a name other than his true name.
Iong faces a maximum penalty of five years imprisonment and a $100,000 fine as to each of the tax counts if convicted. As to the false statements, IONG and YUNG each face a maximum penalty of not more than 30 years and a maximum fine of $1,000,000 or both on each false statement charge in which they are named. In addition, Iong faces a maximum penalty of 15 years imprisonment and monetary fine of $500,000 if convicted of document fraud.
United States Attorney Kubo cautioned that an indictment is merely an accusation, a defendant is presumed innocent unless and until proven guilty.
This indictment was a result of investigations by the Internal Revenue
Service, Criminal Investigation, and the Bureau of Immigration and Customs
Enforcement, Office of Investigations. The prosecution is being handled
by Assistant United States Attorney Leslie E. Osborne, Jr.
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