Posted on: Saturday, March 26, 2005

Ex-lawyer found guilty of illegal finance move

Advertiser Staff

A former Honolulu lawyer has been found guilty of structuring the withdrawal of $130,000 in cash from a bank to avoid reporting the transaction.

Riccio Tanaka, 53, was also found guilty by a federal jury this week of failing to file his 2002 individual tax return by April 15, 2003, the U.S. Justice Department said.

Tanaka's sentencing is scheduled for Aug. 29. The structuring charge carries a sentence of up to five years in prison and a fine of up to $250,000. The charge for failure to file a tax return carries a sentence of up to a year in jail and a fine of up to $100,000.

Tanaka has served a one-year sentence for failing to file his federal income tax return for 1996 and to pay employment taxes, the department said.

Trial evidence showed Tanaka was paid more than $247,000 for legal work in early 2002, then made 13 cash withdrawals of $10,000 each from his bank over 10 days in May 2002, a month before his one-year prison term, the department said.

Federal law requires banks to report to the Internal Revenue Service any cash withdrawal of more than $10,000. Structuring withdrawals to try to deter a bank from filing the reports is a federal crime, the department said.