Honolulu Husband and Wife Sentenced to 24 Months in Prison For Filing False Tax Returns

HONOLULU – United States District Court Judge Leslie E. Kobayashi sentenced Lorraine Yamauchi, age 70, and Jiitsu Yamauchi, age 63, of Honolulu, each to 24 months in prison yesterday for filing a false tax return in violation of Title 26, United States Code, Section 7206(1). The Yamauchis pled guilty to the offense on June 23, 2017.

Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to documents filed in this case and information made public during the sentencing hearing, the Yamauchis operated an Oahu-based church. Jiitsu Yamauchi served as the church’s bishop and Lorraine Yamauchi served as the church’s bookkeeper. The Yamauchis accepted millions of dollars in donations from church members and used a large portion of those donations for their own personal benefit. When filing their tax returns for tax years 2008 through 2014, the Yamauchis failed to include approximately $2.3 million of church-related income. Pursuant to the terms of their plea agreement, the Yamauchis have already paid restitution to the Internal Revenue Service (IRS) in the amount of $621,986.

At sentencing, Judge Kobayashi commented that the Yamauchis abused a position of trust to steal from the members of their church. Judge Kobayashi also noted that the Yamauchis used church donations to support their own personal lifestyle, which included buying 25 luxury vehicles and a 4.2 carat diamond ring. In addition to sentencing both Lorraine and Jiitsu Yamauchi to 24 months in prison, Judge Kobayashi also sentenced each of them to a 12-month term of supervised release.

Acting United States Attorney Enoki stated, "This office will vigorously prosecute fraud and tax crimes where defendants exploit the public’s well-intended desire to be charitable." IRS-Criminal Investigation Special Agent in Charge Darrell J. Waldon said that "IRS – Criminal Investigation is committed to investigating individuals who use charities as their own personal piggy banks. We are pleased that the Yamauchis will be held accountable for using donations for their own personal gain."

The case was the result of a lengthy investigation conducted by IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michael Nammar.