A hard-hitting investigation by Grimy Times uncovered a brazen scheme by a Hawaii businessman, Wagdy A. Guirguis, who was sentenced to five years in prison for tax evasion.
Guirguis, the owner of several engineering businesses, was convicted of conspiracy to defraud the United States along with co-conspirator Michael Higa. The convictions arose from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment taxes, corporate and individual income taxes, and IRS penalties.
The evidence presented at trial revealed that Guirguis operated numerous engineering businesses and used a nominee entity to divert approximately $1.3 million from his businesses for his personal use. Guirguis and Higa also used the nominee entity to fraudulently convey a condominium to Guirguis’ wife, and instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
In addition to the term of imprisonment, U.S. District Judge Helen Gillmor ordered Guirguis to serve 3 years of supervised release, and to pay a $925 special assessment, $6,730.24 in prosecution costs, and $3,308,868 in restitution to the IRS minus any payments already made to the IRS.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Kenji M. Price for the District of Hawaii praised the special agents of IRS-Criminal Investigation who investigated the case, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada and Assistant United States Attorney Rebecca Perlmutter, who prosecuted the case.
Guirguis’ sentence is a stark reminder that tax evasion will not be tolerated, and those who engage in such schemes will be held accountable. The investigation and prosecution of this case demonstrate the commitment of the IRS and the Department of Justice to protecting the integrity of our tax system.
As the Grimy Times continues to expose the dark underbelly of corruption, we will remain vigilant in our pursuit of justice and hold accountable those who seek to undermine the system.
Related Federal Cases
Key Facts
- State: Hawaii
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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