Woman arrested in tax case

Subscribe Now Choose a package that suits your preferences.
Start Free Account Get access to 7 premium stories every month for FREE!
Already a Subscriber? Current print subscriber? Activate your complimentary Digital account.

Big Island resident Sherilyn K. Wahinekapu, 60, was arraigned and pleaded not guilty Monday in U.S. District Court to six counts of making a false claim against the United States.

Big Island resident Sherilyn K. Wahinekapu, 60, was arraigned and pleaded not guilty Monday in U.S. District Court to six counts of making a false claim against the United States.

Wahinekapu was arrested by federal agents early Monday morning based on an indictment returned by a federal grand jury on April 12. Her trial has been set for June 13.

Florence T. Nakakuni, U.S. attorney for the District of Hawaii, said that according to the indictment and in court documents, between July 2008 and February 2009, Wahinekapu filed six tax returns with the Internal Revenue Service, each one claiming a false tax refund.

The fraudulently claimed refund amounts ranged from $40,941 to $1.6 million, according to the government.

The indictment alleges Wahinekapu knew these refund totals were false and fraudulent because they were based on false interest income amounts and false income tax withholdings.

Nakakuni said it is important that all persons who have a duty to file an income tax return complete it accurately and truthfully, without seeking refunds they know are not due to them. Individuals who choose to file fraudulent claims against the United States will be investigated and prosecuted.

Each count of making a false claim against the United States carries a maximum penalty of up to five years in prison and a fine of up to $250,000.