Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, December 18, 2014
Corruption: Al Hee Indicted on 13 Counts--Could Get 39 Years in Federal Prison
By News Release @ 3:10 PM :: 13097 Views :: DHHL, Politicians, Tax Credits

Honolulu Businessman Indicted On Tax Charges

News release from Honolulu US Attorney, Wednesday, December 17, 2014

(Editor's Note: This is happening now because Dan Inouye is dead.  This news release is dated on the exact 2nd anniversary of Inouye's death.  There will be more.)

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 The indictment superseded a prior one-count indictment in September 2014, which had charged the false tax return for 2007 alone.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.

If convicted, Hee faces up to three years imprisonment and a fine of up to $250,000 on each of the 13 charges. The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

The investigation of this case was conducted by the Internal Revenue Service -- Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Leslie E. Osborne, Jr.

---30---

PDF: Hee Indictment Full Text

Background:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT