All of car dealer/developer James Pflueger’s co-defendants in a tax evasion case pending in federal court have pleaded guilty.
Accountant Dennis Duban, who prepared tax returns for Pflueger, his companies and his son, Charles Alan Pflueger, pleaded guilty today to conspiring to defraud the IRS and to assisting in the filing of a false tax return.
He will be sentenced April 13, 2013 by U.S. District Judge Leslie Kobayashi. U.S. Attorney Florence Nakakuni said Duban faces up to five years in prison and $500,000 in fines.
Duban is a Southern California certified public accountant.
According to Nakakuni’s office, Duban knew from 2003 that personal expenses of Charles Alan Pflueger were paid by the family company and were illegally deducted on corporate income tax returns as business expenses.
“Duban also knew that some personal expenses of another co-defendant were being paid for and illegally deducted by Pflueger, Inc.,” Nakakuni’s office said.
Duban also assisted in filing a income tax return in 2007 which falsely reported information about the sale of Pflueger Properties, Inc. real estate in California, the government said.
Proceeds of the sale were sent to a Swiss bank account and were not properly reported to the IRS, Duban admitted.
Duban also failed to report other foreign bank accounts in which he held interests, the government said.
As part of his plea agreement, “Duban admitted that the tax loss associated with his criminal conduct is at least $1 million,” Nakakuni said.
The younger Pflueger and two other defendants in the case, Randall Kurata and Julie Kam, pleaded guilty to filing false tax returns earlier this year.
James Pflueger is currently scheduled to go to trial before Judge Kobayashi on February 12, 2013.
He is also awaiting trial in state court on Kauai on manslaughter charges. Seven people died in flooding after a dam controlled by Pflueger failed in 2006.