Category Archives: Crime

Scammer convicted in federal tax refund fraud was part of earlier Hawaiian sovereignty scam

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The U.S. Attorney’s Office for the District of Hawaii announced Friday that four defendants were convicted for their parts in a complex tax refund fraud scheme that falsely obtained over $1 million in fraudulent federal tax refunds.

From a news release:

HONOLULU – A federal jury convicted four individuals from Hawaii this week for their roles in a tax refund fraud scheme.

The following is according to court documents and evidence presented at trial: from at least January 2015 through September 2018, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired to defraud the United States. As part of their scheme, the conspirators filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS issued refunds totaling over $1 million.

To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators created trusts, opened new bank accounts in the names of business entities and the trusts, and transferred the proceeds between the accounts to conceal them from the government. In addition, Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions. Dumlao and Daniel Miranda also each filed for bankruptcy and made false statements under oath in relation to their respective bankruptcy proceedings.

All the defendants were found guilty of conspiracy to defraud the United States. In addition, the jury found Lastimado-Dradi, Dumlao, and Elvah Miranda guilty of money laundering. Daniel Miranda and Dumlao were found guilty of making false statements under oath in a bankruptcy proceeding. Finally, Elvah Miranda was also found guilty of filing a false tax return, and Lastimado-Dradi was found guilty of aiding and assisting in the preparation of false tax returns. Dumlao was acquitted of filing a false tax return and four money laundering counts. Daniel Miranda was acquitted on one count of filing a false return.

I flagged the original indictment because one of the defendants, Rose Dradi, was also part of a fraudulent foreclosure relief scheme involving David Keanu Sai, a prominent proponent of the idea that the Hawaii Kingdom was never extinguished and now exists as an occupied territory, and Dexter Kaiama, a former Hawaiian attorney who tried to use Sai’s argument as a defense in court cases.

“Sai, who claims to be an expert on sovereignty issues, maintains that the continued existence of the Kingdom of Hawaii means that the State of Hawaii does not exist,” attorneys for the state’s Office of Consumer Protection argued in a 2018 lawsuit. “According to Sai, there are no state laws, and there are no state courts. Sai claims to know all of this first-hand because Sai claims to be an acting minister/diplomat for the Kingdom, and Kaiama is supposedly the Kingdom’s acting attorney general.”

I wrote about the scam in a 2019 post after OCP challenged a foreclosure case in which the homeowners used documents prepared by Sai and Kaiama in an attempt to defeat the lender’s foreclosure. According to OCP, Dradi identified and solicited potential “clients,” and then managed their communication with Sai and Kaiama.

Sai, the agency alleges, has a standard written contract that clients are asked to sign which requires them to pay a fee before services can be provided. Dradi often serves as Sai’s assistant, soliciting clients, obtaining payment, and coordinating with them in advance of court appearances, the agency says. She has often been the “primary point of contact between consumers and Sai.”

Once fees are collected, Sai then allegedly provides a written answer to the foreclosure lawsuit or a “motion to dismiss” that contests the court’s jurisdiction based on his theory that all U.S. or Hawaii law is unenforceable here because Hawaii remains an independent state. The motion is provided in a standard format which the property owners are advised to sign and file in court “pro se,” without the benefit of an attorney.

The agency alleges this scheme “in which Sai’s supposed expertise on Hawaiian sovereignty issues is packaged as part of a motion to dismiss, has been shown to be of no benefit….No judge presiding over a foreclosure case has yet to be convinced that the case must be dismissed for lack of subject matter jurisdiction based upon the continued existence of the Kingdom of Hawaii, and yet Sai keeps offering his services and illegally collecting his fees in advance.”

And when the sovereignty argument fails in court, as it consistently has, the agency says the home owners have incurred additional costs and delays, and as a result “have essentially squandered any meaningful chance they had to save their property….”

The Office of Consumer Protection referred the case for possible criminal prosecution in 2019. Hawaii News Now reported at the time that Sai had taken nearly $8,000 in fees from homeowners facing foreclosure who believed Sai’s assistance would save their homes.

“Sai’s conduct constitutes a felony and Sai’s criminal wrongdoing has been referred to the proper criminal authorities for investigation,” OCP attorney James Evers said in a court filing.

No criminal charges were filed in response to the referral, and neither Sai nor Kaiama was tied to Dradi’s larger tax refund scam.

In June 2020, attorney Kaiama settled a civil lawsuit brought by the Consumer Protector by agreeing to be permanently barred from providing “legal services or any other assistance” to any homeowner whose property is facing actual or threatened foreclosure.

Two years later, in December 2022, Kaiama abruptly surrendered his law license after refusing to cooperate with an investigation by the Office of Disciplinary Counsel, and refused to respond to an order of the Hawaii Supreme Court to show cause why he should not be immediately suspended. Several weeks later, the court made the suspension official, precluding Kaiama from reactivating his law license absent approval from the disciplinary counsel.

Leader of “Murder Inc” street gang pleads guilty to federal charges

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Bronson Gouveia

Bronson Gouveia, who reportedly controlled the now-notorious street gang known as Murder Inc., quietly pleaded guilty last month in a deal with federal prosecutors just weeks before his trial was scheduled to begin.

Gouveia pleaded guilty to possessing a quantity of methamphetamine with intent to distribute, drug trafficking conspiracy, and two firearms violations, including possession of a .40 caliber pistol.

In exchange for his plea, prosecutors agreed to drop four additional charges and not to add additional charges based on information they possessed at the time of the plea deal.

One day prior to Gouveia’s scheduled plea change hearing, prosecutors noted that “the correct spelling of the defendant’s legal name is “Bronsen” (with an E),” although throughout the court record it is spelled “Bronson” (with an O).

Each of the drug charges carries a mandatory minimum 10-year prison term with a maximum of life in prison, a fine of up to $10 million, and up to five years of supervised release after completing the prison term. One charge for possessing a gun used in a drug crime, carries a 5-year mandatory minimum sentence to be served consecutive to any other sentence.

A second firearms charge for being a felon in possession of firearms and ammunition listed several weapons, including “(1) a short-barreled rifle, manufactured by Ambush Firearms, Model A11, Multi Caliber, bearing serial number AF000730C, and approximately 30 rounds of 5.56 caliber ammunition; and (2) a rifle, a Ruger Model Mini Thirty, bearing serial number 189-48448, with approximately 5 rounds of 7.62 caliber ammunition; with said firearms and ammunition…”

The charge carries a maximum 10-year prison term, a fine of up to $250,000, and a term of up to three years of supervised release.

Gouveia, 47, has a long criminal history with nearly 50 arrests and 22 prior convictions, 16 of those on felony charges dating back to 1997.

Gouveia has been in custody since he was arrested in January 2019 for shooting his girlfriend in Kahaluu just two days before Christmas 2018. He was convicted of assault and firearms charges in state court for that incident and was sentenced to two 10-year terms.

The .40 caliber handgun that is the basis for one of the federal firearms charges was the weapon Gouveia used to shoot his girlfriend, court records show.

He was indicted on federal drug charges in December 2018 after a quantity of methamphetamine was found in Gouveia’s home during the investigation of the shooting. Those charges were later dismissed while Gouveia was in state custody and the federal investigation was still underway. He was again indicted on drug and gun charges by a federal grand jury in August 2022, and a superseding grand jury indictment last December piled on additional charges, including threatening a witness and her mother.

The indictment alleged he had texted a witness that “he was going to ‘cut her up slowly’ and that her ‘mom going [to] die’ for ‘ratting’ him out to law enforcement officers….”

Gouveia’s sentencing on the charges has not yet been scheduled.

Three members of Murder Inc, the street gang known by what had been Gouveia’s street name, were acquitted following a two week trial in state court this month. Despite the acquittal, information disclosed in the case suggested that Murder Inc and a second gang, known as West Side, effectively controlled their module at the Oahu Community Correctional Center according to gang rules.

Mike Miske, who was convicted last year on multiple federal charges but died while in federal custody while awaiting sentencing, was housed in the same unit of the Federal Detention Center as Gouveia, and the two reportedly communicated frequently. Further, court records show Jacob “Jake” Smith was assaulted in the Federal Detention Center by members of the West Side gang in retaliation for his testimony against Miske.

See:

“Witness In Miske Case Keeps Getting Beaten In Prison By Crime Boss’s Allies, Lawyer Says,” Civil Beat, August 4, 2024

“O?ahu Jail Killing Shines A Light On Prison Gang Mayhem,” Civil Beat, July 25, 2025

“Three Alleged Gang Leaders Found Not Guilty in Jail Beating Death,” Civil Beat, August 19, 2025

Attorney facing criminal charges is sued by a former associate

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Robert Chapman, the former managing partner of a major Honolulu law firm who was indicted in June on charges stemming from a fraudulent probate case, has now been sued by a former associate attorney who says he defrauded and defamed her while carrying out the probate fraud.

The complaint filed on behalf of Allison Yee, an associate attorney of the law firm then known as Clay Chapman Iwamura Pulice & Nervell, where where Chapman was her boss and supervising attorney until he resigned from the practice of law in lieu of discipline at the end of 2022.

Yee’s lawsuit alleges Chapman came to her in October 2018 and requested that she sign an application for informal probate of the will of Robert James Boulette, a 77-year-old Honolulu man who had died two years earlier. Chapman, her boss, made the request although Yee did not usually work on probate cases.

Yee asked to see the case file, which included the draft application Chapman had prepared, as well as what appeared to be Boulette’s will and a single supplement, or codicil. After checking the information in the application against the will itself, Yee signed the application, which was filed in court on October 24, 2018, initiating the probate of Boulette’s estate. The application designated Chapman to be appointed as Boulette’s personal representative.

The application was rejected by the court in December 2018 due to “irregularities” found in the will. However, Yee says she was not informed of the denial.

Although the application had been denied by the court, Chapman then took Yee’s name and Hawaii State Bar Association credentials, without her knowledge, and used them to create fraudulent Letters of Administration that allowed him to take control of property belonging to Boulette’s estate, including a Nuuanu condominium, and convert the property and cash to his own use.

The complaint claims Yee did not know about Chapman’s “fraudulent conduct,” including the forged changes to the will, or Chapman’s creation and use of fraudulent letters of administration, until she was interviewed by an investigator from the Attorney General’s office in November 2023.

The lawsuit alleges Yee was damaged in several ways, and seeks “general, special, and punitive damages against Defendants in an amount to be proven at trial.”

Chapman committed civil fraud when he made “false representations” to obtain Yee’s signature on the probate application when he “knew that some of the material information contained therein was false.”

Further, the complaint charges “Chapman defamed or put Plaintiff in a false light
when he caused her to sign The Application, which was prepared by him; and The Application was based upon The Alleged Will, which Defendant Chapman knew to be fraudulent and manipulated.”

Finally, as a result of Chapman’s “intentional, reckless and outrageous” behavior, Yee has suffered extreme emotional distress.

In a declaration filed in court this week, attorneys Jim Bickerton and Tyler Mincavage said they expect the probable jury award “would likely be in excess of $150,000.00.”

Meanwhile, Chapman’s criminal trial, originally set to begin later this month, has been postponed until later this year to allow ongoing plea negotiations to continue.

Court minutes show prosecutors affirmed that a plea offer had been sent and that plea negotiations “are still ongoing.”

Chapman surrendered his law license at the end of 2022 after an investigation of a different case by the Attorney General found he “wrongfully attempted to lay claim to approximately $2,000,000.00 in abandoned property” by falsely claiming to represent the owner, who had been a former client years previously.

Chapman’s name was quickly dropped by his former law firm, which is now known as Clay Iwamura Pulice & Nervell.

Also see:

Fraud allegations lead to resignation of prominent business attorney, iLind.net, December 29, 2022

Two cases of legal fraud linked to prominent firm, iLind.net, April 28, 2023

Former Honolulu attorney indicted in alleged $750K probate fraud, iLind.net, June 21, 2025

When “immediately” apparently isn’t

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On June 4, three men were convicted in federal court on multiple felony charges for their roles in a complex and long running bribery scheme to defraud Hawaii County’s affordable housing program.

Two of the defendants–Paul Sulla and Gary Charles Zamber–are Hilo-based lawyers, the third a businessman.

A month after the jury verdict, a friend asked a simple question.

How is it that the two are still listed as having active law licenses even after being found guilty of multiple felonies?

Hmmmm. Good question. Here’s what I found.

The three were convicted on all charges, including one count of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud, all felonies. Sulla was also convicted of money laundering, another felony. They are all scheduled to be sentenced in early December.

To appreciate what was involved, here’s a summary of the case from Environment Hawaii, a monthly newsletter that has reported on parts of the underlying transactions for years and is credited with sparking the federal investigation that eventually led to the indictments.

In its case…the Department of Justice has argued that between late-2014 and late-2021, the three men were involved in a conspiracy to provide bribes or kickbacks to former Hawai’i County Office of Housing and Community Development employee Alan Rudo in exchange for his help in securing affordable housing agreements, valuable excess affordable housing credits (made even more valuable by building restriction waivers he facilitated), and land in Waikoloa meant for the development of affordable housing.

The DOJ estimated that their schemes netted them nearly $11 million and eventually charged the men with honest-services wire fraud. It also charged Sulla, who created the various “shell” companies involved, with money laundering.

Looking back at court records, it appears both men continued to practice law and appear in court on behalf of clients over the three years between their indictment in 2022 and conviction in 2025.

The whole process of attorney discipline is shrouded in layers of secrecy, ostensibly to protect the public, but which mostly protect the reputations of those attorneys being investigated, as well as ODC itself. See my 2022 post, “Hawaii’s Office of Disciplinary Counsel has long considered itself a secret enclave.”

Court records show that on July 9, five weeks after Sulla and Zamber were convicted, ODC filed petitions asking the Supreme Court to issue an order “immediately restraining” both men from the practice of law, and to consider this a suspension from law practice for purposes of court rules.

That seems like it should have been a simple matter, but more two weeks have passed and the court has taken no action.

ODC also asked the court to refer the matter back to the Disciplinary Board to “institute formal disciplinary proceedings that will determine the appropriate discipline to be imposed, with formal hearing stayed until such time as the conviction is final.”

And just when is a conviction final? As we learned after the death of Mike Miske, a conviction isn’t final until the defendants have been sentenced and any appeals have been exhausted, or the deadline for filing appeals has passed. Even if the Supreme Court had actually taken “immediate” action, it could still be many months before the ODC’s confidential formal proceedings would begin. Or longer, if the defendants appeal.

This despite the fact ODC has the benefit of a running start. The office opened disciplinary cases against both attorneys when the federal charges were filed in 2022. These cases, which track the federal allegations, were and remain confidential. Their existence was made public only after ODC received subpoenas from federal prosecutors to produce any records of the disciplinary cases involving Sulla and Zamber, along with any statements made responsive to ODC’s actions, requiring ODC to ask the Supreme Court for a partial waiver of case confidentiality so that it could respond to the federal subpoenas.

More information about the status of the disciplinary cases opened in 2022 is unlikely to become public unless and until the pair are sentenced, run out any appeals, and the ODC formalities lead to a recommendation that will go back to the Hawaii Supreme Court for its decision.

Disbarring both men as convicted felons seems like it should be a slam dunk. But procedurally, even that isn’t simple or transparent.