Man Convicted Of Tax Fraud For Disguising Luxuries -- $96,000 Massage?

[Judi Lynn]

Source: Forbes

7/15/2015 @ 8:40AM 36 views

Man Convicted Of Tax Fraud For Disguising Luxuries -- $96,000 Massage?

Albert S.N. Hee, 61, of Kailua, Hawaii, was convicted on all counts following an 11 day tax fraud trial. The jury found that he filed false income tax returns for 2007 through 2012, and that he obstructed the IRS from 2002 through 2012. He directed his telecommunications company, Waimana Enterprises Inc., to pay millions of his personal expenses. He falsely deducted the payments from his corporate tax returns as if they were legitimate business expenses. And he failed to report the payments as income on his individual returns.

The jury found that Mr. Hee had his company fund $4M in personal expenses, including such items as:

•paying more than $96,000 for personal massages;

•paying his wife and children full-time salaries with benefits packages even though they performed little to no work for the company; and

•paying more than $736,900 in college tuition and housing for his three children.


Read more: http://www.forbes.com/sites/robertwood/2015/07/15/man-convicted-of-tax-fraud-for-disguising-luxuries-96000-massage/

[christx30]

1. Well, you know, sometimes you get really

tense. Like when you're commiting tax fraud. Then a $96,000 massage doesn't seem like such a bad idea.

[unblock]

2. 2 massages per week @$160/ea, times 50 weeks/yr, times 6 years = $96,000

dang those things add up fast, don't they?

$4 million in personal expenses, wow....

[Sunlei]

3. must have been really over the top. People are allowed to deduct business/travel expenses, hire

family members and pay for employee education expenses.

[Laf.La.Dem.]

4. $96,000 for personal massages

He needed those massages - he was worried about all those people cheating the government getting food stamps!

[StandingInLeftField]

5. That's one Happy Ending!

EOM

[DiverDave]

12. LOL! my first thought too

LOT'S of happy endings...snort

[eppur_se_muova]

6. Honesty is for little people. nt

[Fred Sanders]

7. Not declaring the income when you declared the expenses is going to get noticed.

[groundloop]

8. Greedy bastard..... (I bet I can guess which party he votes for)

Not that I necessarily 'enjoy' paying taxes, but I understand why everyone has to pay their share and that everyone benefits.

[Journeyman]

9. He appears to be a solid Democratic supporter. . .

On the FEC page, Albert Hee of Waimana Industries in Kailua has donated to Tom Daschle, Tom Harkin, Daniel Inouye, Jeanne Shaheen and the Obama Victory Fund ($17,900.00). There's a passel of others he donated to who are also all Democrats.

Guess greed and criminal tax fraud are no respecters of political boundaries (though you do expect of find it more on the Republican side).

[jmowreader]

10. Oh great...

...now Faux News is going to use this asshole to "prove" all Democrats are liars, cheats, tax evaders and swindlers.

[Judi Lynn]

11. I never would have thought of looking to see to whom he donates. How thoughtful.

I'm not at all surprised our Democratic President's administration went after him:

Honolulu Businessman Indicted On Tax Charges
Wednesday, December 17, 2014

HONOLULU – A federal grand jury today indicted Albert S.N. Hee of Honolulu on seven counts of corrupt interference with the administration of the Internal Revenue laws and six counts of submitting a false tax return for the years 2007, 2008, 2009, 2010, 2011, and 2012. The indictment superseded a prior one-count indictment in September 2014, which had charged the false tax return for 2007 alone.

Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the superseding indictment alleges that:

• from 2002 to 2012, Hee caused Waimana Enterprises Inc. (WEI), a company incorporated by Hee and the stock of which is owned by Hee, to pay a total of $4,063,294.39 of his personal expenses, including $718,559.09 used to pay for tuition, books and rent payments for Hee’s three college age children; a purchase of a house in Santa Clara, CA for $1,313,261.34 and used exclusively by Hee’s two children; $33,523.00 of college tuition payments for Hee’s child; $92,000.00 in payments for personal massages for Hee; $121,878.87 in personal credit card charges by Hee; $722,550.39 in false wages paid to Hee’s three children who did no work for WEI; $590,201.56 of false wages paid to Hee’s wife who did no work for WEI; $443,103.64 of false employment benefits paid on behalf of Hee’s three children and wife who did no work for WEI, and $28,216.50 of cash withdrawals by Hee.
• Albert Hee instructed an employee of WEI to pay some of these expenses, and classify them as business educational expenses. Hee’s return preparer then reclassified the expenses as loans.
• Albert Hee did not claim the $4,063,294.39 in personal expenses that WEI paid, which should have been reported as income on his personal tax returns filed for the years 2002 to 2012, resulting in personal federal taxes due in the amount of $425,988.00.
• Because Hee improperly deducted some of the personal expenses as business expenses, WEI underpaid its Federal corporate taxes in the amount of $140,651.00.

More:
http://www.justice.gov/usao-hi/honolulu-businessman-indicted-tax-charges