Hawaii couple convicted after fraudulent tax refund scheme deceived IRS.
A federal jury in Honolulu has found a married couple from Hawaii guilty in a case involving a fraudulent tax refund scheme that stretched across the country. Prosecutors said the plan involved filing false paperwork with the Internal Revenue Service in order to receive a large refund that the couple did not legally qualify to obtain. The case is part of a broader investigation that has already led to several convictions tied to the same operation.
Court records show that Beverly Braumuller-Hawver and Scott Hawver, residents of Ewa Beach, Hawaii, were involved in the plan between early 2015 and late 2018. According to evidence presented during the trial, the pair paid a promoter who provided them with documents designed to trick the tax system. Those papers were then used to file an amended tax return that falsely claimed a large amount of withheld federal taxes.
The documents included a fabricated Form 1099-MISC. This form falsely stated that a mortgage company had paid Scott Hawver more than $749,000 in income. The form also claimed that over $424,000 of that amount had already been withheld for federal taxes. Because of that false withholding claim, the amended return suggested that a large refund was owed.
Based on the paperwork submitted to the government, the IRS issued a refund check for $192,845. Prosecutors told the jury that the refund was based entirely on false information and that the couple was not entitled to receive it.
Evidence at trial showed that the couple quickly moved the money after receiving the check. The refund was deposited into a newly opened bank account. Within a short period of time, most of the funds were transferred into another account connected to a business called BeverlyB Music LLC, which the couple operated.
The transfers did not stop there. Prosecutors said more than $70,000 was paid out from that account to other individuals who were involved in the scheme. In another transaction, Braumuller-Hawver wired $22,000 to a jeweler in order to purchase gold and silver coins.
Authorities said these actions were part of an effort to move the money before the government could recover it. When the IRS later attempted to reclaim the refund, investigators said the couple attempted to slow the process by sending written responses that repeated false legal claims.
The court also heard that the couple filed a petition in the U.S. Tax Court in an attempt to block collection of the funds. They also joined several civil lawsuits against IRS employees who were working on the case. Prosecutors described those lawsuits as frivolous and designed to interfere with the investigation.
After reviewing the evidence, the jury convicted both defendants of conspiracy to defraud the IRS. Braumuller-Hawver was also found guilty of filing a false tax return and money laundering connected to the movement of the funds.
Sentencing for both defendants is scheduled for June 25. Under federal law, the conspiracy conviction carries a possible sentence of up to five years in prison. Braumuller-Hawver could face additional penalties if the judge applies the maximum punishment for the other counts. The money laundering charges carry potential sentences of up to ten years each, while the false tax return charge carries a possible three-year sentence.
A federal judge will decide the final penalties after reviewing the sentencing guidelines and other factors set out in federal law.
The case is one part of a much larger investigation into a nationwide tax fraud plan that attracted more than 200 participants across at least 19 states. The scheme was promoted through a program called the “Escrow Trust Refund,” which encouraged participants to file fraudulent tax paperwork in hopes of receiving large refunds.
Officials said the program was organized in Hawaii by Rosemarie Lastimado-Dradi. She recruited clients and instructed them on how to submit the paperwork. In exchange, she collected a percentage of each refund obtained through the scheme. According to investigators, her share ranged from about 25 percent to 40 percent.
Earlier this year, Lastimado-Dradi received a nine-year prison sentence for her role in the operation. Several other individuals connected to the scheme have also been sentenced in recent years. Those sentences ranged from 20 months to four years in prison.
Federal officials said the investigation shows that tax fraud often involves organized networks rather than isolated individuals. Even when funds are moved through businesses, trusts, or other accounts, financial records often reveal the path of the money.
Authorities continue to warn that fraudulent refund schemes harm the public because they divert money from government programs funded by taxpayers. Investigators say they will continue pursuing cases involving false tax filings and financial deception.
Sources:
Hawaii Couple Convicted at Trial in Tax Refund Fraud Conspiracy
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