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The Honolulu Advertiser
Updated at 3:33 p.m., Sunday, April 13, 2008

Couple charged in tax case

Advertiser Staff

An Oahu couple has pleaded no contest to multiple felony and misdemeanor tax violation charges and have been fined, ordered to perform community service and also pay restitution fees.

Avelino and Anita Gabriel were charged with two felony counts of false and fraudulent statements, two misdemeanor counts of willful failure to file their annual general excise returns and one count of willful failure to secure a license.

The couple operated a care home, which ceased doing business in the state of Hawai'i in 2003. After its closing, the Gabriels continued to care for a former patient of the care home without a valid license and received compensation for their services.

They failed to report the additional income on their income tax returns for 2004 and 2005 and also failed to file general excise tax returns for the same years.

Anita Gabriel had been previously prosecuted by the state Department of Taxation in 2001 and was sentenced by Judge Karl Sakamoto. She pleaded no contest to five misdemeanor counts of failing to file the general excise returns for the care home she operated. The judge granted her request for a deferred acceptance of no contest plea with a five-year deferral and ordered her to pay a fine of $15,000. Anita Gabriel took more than five years to pay the fine and went before Sakamoto eight times before her case was finally closed in February 2007.

The new tax violations occurred while she was still under the court's supervision and now included two felony charges for filing false tax returns. The penalty for a false and fraudulent statement as described in HRS §231-36 carries a fine up to $100,000, and imprisonment of not more than three years or probation.

Against the state's objections, Sakamoto again granted her request for a no contest plea without a deferral, ordered her to perform 100 hours of community service, and pay a fine of $2,500 and court fees.

Avelino Gabriel was granted his deferred acceptance of no contest plea with a five-year deferral period, and was ordered to pay a fine of $1,000 and perform 100 hours of community service.

They are both held jointly and severally responsible to pay the restitution of $5,353.