Four Oahu residents were sentenced in federal court this week for their involvement in a tax refund fraud scheme, following convictions by a federal jury last August. The sentences were handed down by Senior United States District Judge J. Michael Seabright.
Rosemarie Lastimado-Dradi, 52, formerly of Kapolei, received a 108-month prison sentence for conspiring to defraud the United States, aiding in the preparation or filing of false tax returns, and money laundering. Marciaminajuanequita Dumlao, 61, of Honolulu, was sentenced to 33 months for conspiracy to defraud the United States, money laundering, and making a false statement under oath during bankruptcy proceedings. Elvah Miranda and Daniel Miranda, both 64 and from Waipahu, were sentenced to 48 months and 30 months respectively; Elvah was convicted of conspiracy to defraud the United States, filing a false tax return, and money laundering while Daniel was convicted of conspiracy and making a false statement under oath in bankruptcy.
All four individuals were also ordered to serve three years of supervised release after their prison terms and pay restitution.
Court records show that between January 2015 and September 2018 the defendants conspired to file fraudulent individual tax returns claiming false withholdings from mortgage lenders. They then sought large refunds from the IRS based on these filings. The IRS issued over $1 million in refunds to Dumlao and the Mirandas as part of this scheme. To conceal their actions from authorities, they created trusts and business entities to open new bank accounts where they moved proceeds from the fraud through multiple transactions.
The group further attempted to obstruct IRS efforts by sending frivolous correspondence to the agency, filing retaliatory liens against an IRS employee involved in recovering funds, and initiating bankruptcy proceedings that included false statements under oath by Dumlao and Daniel Miranda. Lastimado-Dradi promoted the scheme within Hawaii’s district—recruiting at least five participants—which resulted in an estimated tax loss exceeding $2.1 million; she received nearly $1 million as her share.
During sentencing Judge Seabright described Lastimado-Dradi as “the mastermind of the scheme in Hawaii” stating “her fingerprints are just everywhere in this scheme.”
Restitution orders include $1.72 million for Lastimado-Dradi payable to the United States; $325,981.86 for Dumlao; and $567,789.55 jointly owed by Elvah and Daniel Miranda.
“Today’s sentences send a strong warning to those who seek to evade our nation’s tax laws – there is nowhere for you to hide,” said United States Attorney Ken Sorenson. “The United States Attorney’s Office and our law enforcement partners will relentlessly pursue and convict those who seek to steal from our country, and its honest tax paying citizens, through the operation of schemes to frustrate the lawful assessment and collection of taxes.”
“For years, Ms. Lastimado-Dradi directed her co-conspirators to conceal this theft from the public through trusts and business entities,” said Carrie Nordyke, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “In the end, our agents followed the money, and this ruling has given that money back to taxpayers.”
The case was investigated by IRS Criminal Investigation along with support from Treasury Inspector General for Tax Administration and FBI personnel.
Assistant U.S. Attorney Gregg Paris Yates prosecuted alongside Trial Attorney Sarah A. Kiewlicz from the Department of Justice Criminal Division Tax Section.
