Hawaii Couple Convicted in $200k Tax Refund Fraud Conspiracy

A federal jury in Honolulu has convicted a married couple for their participation in a sophisticated tax refund scheme that defrauded the Internal Revenue Service of nearly $200,000. The verdict against Beverly Braumuller-Hawver and Scott Hawver, residents of Ewa Beach, marks the latest development in a broader crackdown on a national fraud operation that ensnared hundreds of participants across 19 states.

Background and Context

The case is part of a larger investigation into the “Escrow Trust Refund” scheme, a fraudulent operation active between 2015 and 2018. Authorities have identified the program as a coordinated effort to file false paperwork with the IRS. According to the Department of Justice, the scheme was organized in Hawaii by Rosemarie Lastimado-Dradi, who recruited clients and instructed them on how to submit falsified documents in exchange for a percentage of the refunds. Lastimado-Dradi was previously sentenced to nine years in prison for her role as the promoter.

Key Figures and Entities

Court records show that Braumuller-Hawver and Scott Hawver paid a promoter to provide fabricated documentation intended to deceive tax authorities. Central to the conspiracy was a bogus Form 1099-MISC, which falsely claimed that a mortgage company had paid Scott Hawver more than $749,000 in income. The form further alleged that over $424,000 had been withheld in federal taxes, creating the foundation for a fraudulent refund claim. The IRS subsequently issued a refund check for $192,845 based on these false filings.

Legal and Financial Mechanisms

Evidence presented at trial revealed a rapid effort to launder the funds once the refund was secured. The money was initially deposited into a newly opened bank account before being transferred to BeverlyB Music LLC, a business operated by the defendants. Prosecutors demonstrated that more than $70,000 was paid out to other individuals involved in the scheme, and $22,000 was wired to a jeweler to purchase gold and silver coins.

When the IRS attempted to reclaim the funds, the couple attempted to obstruct the process by filing a petition with the U.S. Tax Court and initiating civil lawsuits against IRS employees. Prosecutors characterized these legal maneuvers as frivolous actions designed to delay the government's recovery efforts. Braumuller-Hawver was convicted of conspiracy to defraud the IRS, filing a false tax return, and money laundering, while Scott Hawver was convicted of conspiracy.

International Implications and Policy Response

While this specific case was tried in Hawaii, it highlights systemic vulnerabilities exploited by organized networks to defraud the U.S. tax system. Federal authorities emphasize that such schemes divert critical resources from public programs and are pursued aggressively. The investigation into the “Escrow Trust Refund” has resulted in multiple convictions, with sentences ranging from 20 months to four years for various co-conspirators, underscoring the ongoing challenge of monitoring financial crime across jurisdictions.

Sources

This report draws on court filings and a press release from the U.S. Department of Justice regarding the conviction and the broader investigation.