Leihinahina Jennifer Sullivan, Tax Identity Theft, HI 2023

HONOLULU, HI – Leihinahina “Jennifer” Sullivan, 45, of Lihue, Kauai, is facing a barrage of federal charges following her arraignment Friday, February 24, on a 12-count indictment. Sullivan stands accused of orchestrating a sophisticated scheme to defraud both the IRS and the State of Hawaii, allegedly using a non-profit organization to funnel stolen funds. She pled not guilty to all counts, and a trial date is set for April 25, 2017, before Chief United States District Judge J. Michael Seabright.

According to allegations detailed in the indictment, Sullivan’s scheme spanned at least six years, from January 2011 through January 2017. The U.S. Attorney’s Office for the District of Hawaii, led by Florence T. Nakakuni, claims Sullivan filed false tax returns on behalf of unsuspecting individuals, seeking fraudulent refunds. These returns were allegedly riddled with fabricated information, including false filing statuses, inflated dependent claims, bogus deductions for medical and charitable donations, and fictitious employment expenses. She also allegedly claimed false tax credits, including those for child care and the Earned Income Tax Credit.

The indictment paints a picture of deliberate concealment. Sullivan allegedly kept the fraudulent activity hidden from the taxpayers themselves, refusing to review the filed returns with them. Communication with the IRS and the State of Hawaii was routed through Sullivan’s personal email addresses, further obscuring her involvement. Critically, the alleged scheme involved diverting tax refunds into bank accounts belonging to Mobile Native Hawaiian Health (“MNHH”), a non-profit where Sullivan held multiple positions, including director, or into other accounts under her control. This allowed her to pocket the ill-gotten gains.

The deception didn’t stop there. When individuals requested copies of their filed tax returns, Sullivan allegedly provided them with altered versions—cleaner copies that omitted the false claims and manipulated the direct deposit information. These doctored returns presented a false picture of the taxpayer’s financial situation, shielding Sullivan’s fraud. The indictment specifically alleges that Sullivan unlawfully used an individual’s name, Social Security number, and signature to file fraudulent State of Hawaii tax returns in 2010 and 2011, constituting aggravated identity theft.

Federal prosecutors are prepared to pursue harsh penalties if Sullivan is convicted. She faces a maximum of 20 years imprisonment for each count of wire fraud, up to five years for each false claims count, and a mandatory minimum of two years imprisonment for each count of aggravated identity theft. Assistant U.S. Attorney Rebecca A. Perlmutter is leading the prosecution. It’s important to remember that these are merely allegations at this stage, and Sullivan is presumed innocent until proven guilty in a court of law.

The investigation was a collaborative effort, spearheaded by IRS-Criminal Investigation with crucial assistance from the Kauai Police Department and the State of Hawaii Department of Taxation. This case serves as a stark reminder that those who exploit non-profit organizations and steal identities for financial gain will be relentlessly pursued by federal law enforcement. Grimy Times will continue to follow this case as it develops.