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Michael Chock, Tax Fraud, Hawaii 2016
A brazen scheme to rip off the US Treasury has landed a Hawaii couple in hot water. Michael and Brigida Chock of Ewa Beach have pleaded guilty to conspiring to defraud the United States by obtaining a fraudulent tax refund and then thwarting IRS efforts to recoup it.
According to court documents, the couple conspired with a third individual to prepare a false 2014 amended individual income tax return (Form 1040X) and a false miscellaneous income form (Form 1099-MISC) purportedly issued by a mortgage lender to Michael Chock. The tax return falsely reported an inflated tax withholding amount based on the fraudulent Form 1099-MISC, resulting in a refund of $225,327.
The Chocks took several steps to obstruct IRS efforts to recover the fraudulently obtained refund, including depositing the refund check into a bank account in the name of a trust they created to conceal the refund and by paying the coconspirator $73,500 for assistance in obtaining and concealing the refund. They also falsely claimed to the IRS that they had prepared the false tax return themselves.
This egregious case of tax fraud has caught the attention of federal authorities. ‘This case highlights the importance of vigilance in preventing and detecting tax-related crimes,’ said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division. U.S. Attorney Clare E. Connors for the District of Hawaii also weighed in, saying ‘We will continue to work tirelessly to protect the integrity of our tax system.’
The investigation into the Chocks’ scheme was a collaborative effort between IRS-Criminal Investigation, the Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Trial Attorneys Sarah Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the District of Hawaii are prosecuting the case.
The defendants are facing serious consequences for their actions. Each faces a maximum penalty of five years in prison, a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Key Facts
- State: Hawaii
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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