Dentist gets 21 months in tax fraud

By Curtis Lum
Advertiser Staff Writer

A Honolulu dentist was sentenced yesterday to 21 months in federal prison after pleading guilty to one count of tax evasion.

Victor H. Zuercher, 63, was ordered by U.S. District Judge Edward Rafeedie to begin serving his sentence on June 29. Once he is released from prison, Zuercher also must serve three years of supervised release, which is the federal version of parole.

Co-defendant Peter P. Virdone, a certified public accountant and tax preparer, was sentenced to six months in prison for his role in the tax fraud scheme. Virdone, 60, also was sentenced to two years of supervised release.

On Oct. 20, 2003, Zuercher pleaded guilty to a long-running tax evasion scheme in which he failed to report more than $200,000 in state and federal income and corporate taxes. U.S. Attorney Ed Kubo said the two men filed false tax documents from October 1986 to April 2000.

The scheme involved a dental practice created by Zuercher, Kubo said. Zuercher listed his sister and son as officers of the company, and Virdone as a shareholder, he said.

Zuercher admitted in court that he falsely attributed about $136,000 in income to his son in an effort to hide money and assets that could have been garnished to collect income taxes, Kubo said. Virdone admitted to knowingly aiding the effort to conceal Zuercher's income, Kubo said.

The case was prosecuted by Edward "Ted" Groves, of the U.S. Department of Justice, Tax Division, Western Criminal Enforcement Section.

Reach Curtis Lum at culum@honoluluadvertiser.com or 525-8025.