Tax preparer indicted for preparing false returns

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A federal grand jury recently indicted 52-year-old Melanau Fohe Haiola of Kahuku, Oahu, for preparing false tax returns for her clients and for failing to report income she earned.

A federal grand jury recently indicted 52-year-old Melanau Fohe Haiola of Kahuku, Oahu, for preparing false tax returns for her clients and for failing to report income she earned.

Haiola allegedly prepared 17 federal income tax returns that fraudulently claimed the American Opportunity Credit, a deduction for undergraduate education expenses; personal property rental expense deductions; or medical, dental, or employee expenses, according to the indictment charges. In addition, Haiola allegedly filed false tax returns for herself for the 2009 and 2010 tax years by under-reporting her income by a total of $114,315.

Florence T. Nakakuni, United States attorney for the District of Hawaii, said according to the indictment, Haiola, as owner and operator of Nau’s Tax Preparation, personally prepared, and supervised others in the preparation of, hundreds of federal income tax returns.

If convicted, Haiola faces up to three years in prison and a fine of up to $250,000 for each of the 19 charges.

The prosecution resulted from an investigation conducted by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Marshall Silverberg.