Press Release
U.S. Department of Justice
United States Attorney
District of Hawaii
PJKK Federal Building (808) 541-2850
300 Ala Moana Blvd., Room 6-100 FAX (808) 541-2958
Honolulu, Hawaii 96850
For Immediate Release
Contact: Elliot Enoki
April 10, 2008
TWO FORMER HAWAII
PSYCHOLOGISTS INDICTED FOR TAX EVASION
HONOLULU, HAWAII - A federal grand jury indicted two former Hawaii residents, David Opollo Ross and Lei Lavarias Ross, also known as Lei L. Lavarias and Lei Lopez, who are currently residing in Nevada, today on tax evasion and related tax offenses. The indictment alleges that the total approximate amount of taxable income earned by the Rosses during these years totaled over $794,000 and the taxes owed totaled over $182,000.
Edward H. Kubo, Jr., United States Attorney for the District of Hawaii, said that according to the indictment the Rosses, who had been licensed psychologists in the State of Hawaii since 1997, used entities they established or controlled to hide the income they had earned from their psychology services from the Internal Revenue Service. The entities contracted with the State of Hawaii and other state, city, for-profit, and non-profit organizations for services.
Both defendants were charged with five counts of tax evasion for the tax years 1998-2002 and one count of conspiracy relating to the evasion. They were additionally charged with two counts each of failing to file income tax returns for the years 2001 and 2002. If convicted, each defendant faces a maximum term of imprisonment of five years and a fine of up to $250,000 as to each of the five evasion counts and the conspiracy count. Additionally, each of the failure to file counts carries maximum penalties of one year imprisonment and $100,000 in fines. The charges contained in the indictment are mere accusations, and every defendant is presumed innocent unless and until proven guilty.
The indictment is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation. The prosecution is being handled by Assistant United
States Attorney Clare Connors.
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