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Trucking firm owners
admit theft in tax case

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By Debra Barayuga
Star-Bulletin

Owners of a local trucking company face up to five years in jail and fines of up to $10,000 for filing fraudulent tax returns.

Thomas W.K. Kam and Herbert W.S. Kam of Kam's Express Inc. in Mapunapuna each pleaded no contest today in Circuit Court before Judge Gail Nakatani to second-degree theft. They knowingly filed materially false income tax returns for the 1997 tax year.

Kam's Express Inc. pleaded to three counts of failing to file public service company tax returns for calendar years 1995, 1996 and 1997 -- a requirement for businesses regulated by the Public Utilities Commission.

The business also pleaded no contest to three counts of failing to provide the Department of Taxation with copies of W-2 forms given to employees for calendar years 1995, 1996 and 1997.

The maximum possible penalty to the company for each count is $100,000, for a total of $600,000.

As part of a plea agreement, the company and the Kams have agreed to be jointly and severally liable to the state for all unpaid public service company taxes and withholding taxes for calendar years 1995, 1996 and 1997.

"If you consider what's fair and equitable under the circumstances, the state is happy with the plea agreement," said Rick Damerville, deputy attorney general.

The Kams will be sentenced April 11.

The Kams were indicted last summer with more than 100 counts of failure to file tax returns and not paying to the state taxes withheld from employees' pay.

Under the plea agreement, the state will drop the remaining charges. A bulk of the charges represented each time the company failed to give a copy of an employee's W-2 to the Tax Department in each of the tax years.

Howard Chang, the Kams' attorney, could not be reached for immediate comment.