A Honolulu businessman was sentenced yesterday to five years in prison after he was found guilty in his retrial on charges he filed false tax returns and evaded between $4.5 million and $5.5 million in taxes.

Michael Boulware's sentence, handed down by visiting U.S. District Judge Edward Rafeedie, is nine months longer than a sentence Boulware received after he was found guilty of the same charges in 2001. All but one of those 10 convictions were overturned by the U.S. 9th Circuit Court of Appeals in September 2004 and a new trial was ordered.

A federal court jury in July found Boulware guilty again. Rafeedie said Boulware's second trial showed Boulware was more "culpable" in the effort to hide income overseas than was shown at his first trial. Rafeedie said Boulware was a successful businessman who displayed "unnecessary greed" and went to extreme measures to hide his income.

During the second trial, former state Rep. Nathan Suzuki testified that he helped create secretly held corporations and overseas bank accounts to hide Boulware's assets. Suzuki, who prepared Boulware's tax returns, pleaded guilty for his role in the scheme and is serving a three-year federal prison term.

Suzuki invoked the Fifth Amendment and refused to testify at Boulware's first trial. He agreed to testify for the prosecution at the second trial.

Boulware, 57, had faced up to 40 years in prison on the nine felony tax counts and single conspiracy count. Rafeedie ordered Boulware, who remains free on bail, to begin serving his sentence on Jan. 5, 2006. Rafeedie also placed Boulware on three years' supervised release, which is similar to probation, once he completes his term.

Boulware declined to comment after the sentencing, but in a brief statement in court he apologized for his actions.

"All my problems started during a troubled time in my life," Boulware said. "I'm sorry it happened and I can assure you — whatever the outcome — it will never happen again."

In asking for a 63-month sentence, Assistant U.S. Attorney Jared Dwyer said Boulware had yet to accept responsibility for his actions. Dwyer said Boulware's activities placed his company and its employees in jeopardy, and said Boulware also continued to devise schemes even though he knew he was under investigation.

Dennis O'Connor, Boulware's attorney, disagreed and said his client has accepted responsibility.

"He certainly apologized to the court this morning and obviously he believes that there's something there that he should apologize for," O'Connor said. "We didn't think that (the longer term) should have taken place, but you take what you get."

O'Connor said he will appeal the latest convictions.

Boulware is the founder of Hawaiian Isle Enterprises Inc., a vending machine company that grew into a multimillion-dollar business that sold Kona coffee, bottled water and cigarettes. Federal prosecutors accused him of coming up with several schemes to avoid reporting more than $10 million in money he received from the company.

Reach Curtis Lum at culum@honoluluadvertiser.com.