Hawaii Four Nabbed in $1M Tax Refund Scam

HONOLULU, HI – Four Hawaii residents are facing serious time after a federal jury found them guilty this week in a brazen tax refund fraud scheme that siphoned over $1 million from the U.S. Treasury. The scheme, meticulously unraveled by federal investigators, involved filing bogus tax returns claiming fraudulent withholdings, then laundering the ill-gotten gains to avoid detection.

According to court documents and trial evidence, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired from January 2015 through September 2018 to defraud the United States. They fabricated withholdings on individual tax returns, triggering substantial refunds from the IRS. Once the refunds hit their accounts, the conspirators didn’t stop there. They established a complex web of trusts and business entities to funnel and conceal the money, attempting to shield it from the government’s reach.

The feds say Lastimado-Dradi, Dumlao, and Elvah Miranda went beyond simply hiding the money. They actively laundered the fraudulently obtained refunds through a series of calculated bank transactions. Adding insult to injury, both Dumlao and Daniel Miranda filed for bankruptcy and then compounded the fraud by making false statements under oath during those proceedings, attempting to further obscure their criminal activity.

The jury didn’t buy it. All four defendants were convicted of conspiracy to defraud the United States, carrying a maximum penalty of five years in prison. But the charges didn’t end there. Lastimado-Dradi, Dumlao, and Elvah Miranda were also found guilty of money laundering, each facing up to ten years per count. Daniel Miranda and Dumlao were convicted of making false statements under oath in bankruptcy proceedings, a charge also carrying a potential five-year sentence per count. Elvah Miranda also faces three years for filing a false tax return, while Lastimado-Dradi faces three years for aiding and assisting in the preparation of false returns.

While the jury handed down several guilty verdicts, they weren’t sweeping. Dumlao was acquitted of filing a false tax return and four money laundering counts, and Daniel Miranda dodged a single charge of filing a false return. However, the remaining convictions paint a clear picture of a calculated and extensive fraud. Sentencing is scheduled for Dradi and Dumlao on January 26, 2026, and for Elvah Miranda and Daniel Miranda on January 27, 2026. A federal district court judge will ultimately determine the fate of each defendant, considering U.S. Sentencing Guidelines and other relevant factors.

The investigation was led by IRS Criminal Investigation, with prosecution handled by Trial Attorneys Sarah A. Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii. This case serves as a stark reminder that attempts to cheat the system will be met with federal scrutiny and, ultimately, prosecution. The Grimy Times will continue to follow this case as sentencing approaches.

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