Suzuki allegedly A California distributor of Kona coffee convicted of tax evasion two years ago allegedly made wire transfers through the bank account of an overseas corporation controlled by recently indicted state Rep. Nathan Suzuki.
tied to wire fraud
His overseas account was allegedly
used to hide wire transfersBy Debra Barayuga
dbarayuga@starbulletin.comMichael Norton hid transfers totaling nearly $1.1 million in a Credit Suisse bank account, including transfers made through Harvest International King Coffee Ltd., according to documents filed Tuesday in Suzuki's case. Norton pleaded guilty in July 2000 to wire fraud and income tax evasion in a scheme to distribute mislabeled Central American coffee as 100 percent Kona coffee.
The link between Norton and Suzuki was disclosed by the government in its memo of opposition to Suzuki's recent request to modify terms of his pretrial release. A hearing on the request is scheduled today before U.S. Magistrate Kevin S.C. Chang.
Suzuki, 54, was indicted last month for allegedly lying on his federal income tax returns for 1996, 1997 and 1998, and failing to disclose his interests in foreign corporations in Hong Kong and the kingdom of Tonga. Suzuki pleaded not guilty July 3 and is free pending trial after posting a $100,000 unsecured bond.
According to the indictment, Harvest International was one of two overseas corporations set up by Suzuki for isle businessman Michael Boulware, president of Hawaiian Isles Enterprises, a major distributor of wholesale coffee, tobacco and vending machines in the islands.
Boulware was convicted last November for lying on his tax returns and failing to report $10 million in personal income that he funneled from his own company for his own use. Prosecutors alleged that he laundered money through Harvest International and Pacific Vendors Equipment Ltd. to avoid personal tax liability.
Suzuki is asking the court to modify conditions of his release to allow him to make contact with trial witnesses.
The court, at the prosecution's request, had restricted Suzuki from making contact with 17 potential government witnesses, including Boulware and Barney Shiotani, a business colleague of Suzuki.
Shiotani, who provided legal and financial advice to Boulware, had testified for the government and the defense at Boulware's trial in November.
According to prosecutors, Shiotani provided about $250,000 of income to Suzuki during tax years 1995 through 1997. Shiotani could not be reached for comment.
Suzuki's attorney, Robert Klein, argues that restricting Suzuki's contact with potential witnesses is oppressive, unduly prejudicial and hampers the preparation of his client's defense.
But Edward Groves, special attorney with the U.S. Department of Justice's Tax Division, said at least three of the 17 witnesses the government may call at trial could fall into the category of "co-schemer." He cited Boulware, Norton and Shiotani.
Groves wrote that the government does not object to Suzuki contacting Shiotani or any of the 17 witnesses as long as it is done in the presence of his attorney.