Honolulu, HI – Charles Alan Pflueger, owner of Pflueger Inc., a Hawaii car dealership, pleaded guilty to filing a false individual federal income tax return for tax year 2005, along with two other defendants, in a shocking case of tax evasion.
According to the indictment and other documents filed in Honolulu federal court, Pflueger, Randall Kurata, the company’s chief financial officer, and Julie Kam, Pflueger’s executive assistant, caused Pflueger Inc. to pay the personal expenses of Charles Alan Pflueger and others. The three defendants then caused Pflueger Inc. to improperly deduct the personal expenses as business expenses on Pflueger Inc.’s corporate tax returns.
Pflueger caused another of his companies, Pacific Auto Distributors LLC, to pay additional personal expenses, and he did not report those payments as income on his personal tax returns. Kurata pleaded guilty to one count of filing a false corporate federal income tax return for Pflueger Inc. for tax year 2003, admitting that he knew the company was paying for personal expenses, including Pflueger’s, and signed checks to pay for them.
Kam pleaded guilty to one count of filing a false individual federal income tax return for tax year 2005 because she failed to report as income personal expenses that Pacific Auto Distributors LLC paid on her behalf. The sentencing for Pflueger and Kam is set for January 31, 2013, while Kurata’s sentencing is scheduled for December 20, 2012.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, thanked Special Agents of IRS – Criminal Investigation, who investigated the case, Assistant U.S. Attorney Leslie E. Osborne, Jr. and Tax Division Trial Attorneys Timothy J. Stockwell and Dennis R. Kihm, who prosecuted the case.
The case serves as a stark reminder of the serious consequences of tax evasion, and the importance of honesty and transparency in financial dealings. As a community, we must remain vigilant and report any suspicious activity to the authorities.
The Grimy Times will continue to follow this case and provide updates as more information becomes available.
Disclaimer: The information contained in this article is for general information purposes only. The facts and circumstances of the case may have changed since the date of publication.
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