Former car dealer Jimmy Pflueger's tax preparer has been found guilty of conspiracy to defraud the Internal Revenue Service and assisting in the filing of false federal income tax returns.
Hawaii's U.S. District Court sentenced Dennis Duban, a Los Angeles-based accountant and tax return preparer, to 24 months in prison, a $30,000 fine and 600 hours of community service.
Duban pleaded guilty to the offenses in October 2012.
Attorneys say Duban was a certified public accountant who ran a firm called Duban Accountancy, LLP. He also provided tax service to many Pflueger companies and knew of illegal deductions and oversights.
Three of Duban’s codefendants, Alan Pflueger, Randall Kurata and Julie Kam previously pleaded guilty.
Alan Pflueger pleaded guilty to willfully filing his own false 2005 Form 1040. In his plea agreement he admitted that from 2003 through 2005, personal expenses were paid for on his behalf by Pflueger, Inc., and Pacific Auto Distributors, LLC, another entity he owned, and his personal tax returns did not report these personal expenses as income.
Randall Kurata, CFO of Pflueger, Inc., pleaded guilty to willfully filing a false 2003 Form 1120, U.S. Corporation Income Tax Return, for Pflueger, Inc., which improperly deducted as business expenses significant personal expenses of Alan Pflueger.
Julie Kam, Alan Pflueger’s executive assistant, pleaded guilty to willfully filing her own 2004 Form 1040, which did not report personal expenses paid to her through Pacific Auto Distributors. Judge Kobayashi sentenced Alan Pflueger to 15 months’ imprisonment, while Randall Kurata and Julie Kam were both sentenced to terms of probation.