Hawaii Four Face Tax Fraud Prison Terms

HONOLULU – A federal jury has delivered a hard-hitting verdict against four individuals from Hawaii, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda, who were found guilty of orchestrating a massive tax refund fraud scheme.

The defendants conspired to defraud the United States by filing fraudulent individual tax returns and false documents that reported fictitious withholdings from mortgage lenders, leading the IRS to issue refunds totaling over $1 million. To evade detection, they created trusts and opened new bank accounts, shuffling funds to conceal the proceeds.

According to court records, Lastimado-Dradi, Dumlao, and Elvah Miranda were also guilty of money laundering through a labyrinthine web of bank transactions. Daniel Miranda and Dumlao faced additional charges for filing bankruptcy fraudulently and making false statements under oath during their bankruptcy proceedings.

In the final chapter of this financial saga, the jury found all four defendants guilty of conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda were also convicted of money laundering, while Daniel Miranda and Dumlao were found guilty of making false statements under oath in bankruptcy proceedings. Elvah Miranda was additionally penalized for filing a false tax return, and Lastimado-Dradi for aiding and assisting in the preparation of false tax returns. Dumlao was acquitted on some counts.

The defendants are set to face significant penalties. They all face a maximum sentence of five years in prison for conspiracy to defraud the United States, while Lastimado-Dradi, Dumlao, and Elvah Miranda each face ten years for money laundering. Elvah Miranda risks three years for filing a false tax return, and Daniel Miranda and Dumlao could serve up to five years for their bankruptcy charges.

The IRS Criminal Investigation division is actively investigating the case, with trial attorneys Sarah A. Kiewlicz and Meredith Havekost from the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates prosecuting on behalf of the District of Hawaii.