Feds snare accountant
involved in donations
Federal prosecutors have secured their first guilty plea in their tax investigation into political donors.
Yiu Wing Wong, chief accountant for the engineering firm Geolabs Inc., reached a plea agreement Wednesday on a charge he falsely booked $13,000 in political donations on Geolabs' federal tax returns for 1997.
Assistant U.S. Attorney Mike Seabright said the case is the result of an investigation by the Internal Revenue Service's criminal investigation division. He said the IRS investigation is ongoing.
Wong, who will be sentenced before U.S. District Judge Helen Gillmor in March, faces up to three years in jail and a fine of up to $250,000.
According to federal prosecutors, Wong created false entries in the company's financial statements, which listed political contributions as deductible business expenses. Such donations are not deductible as business expenses.
The contributions were made by various Geolabs employees who were reimbursed by the company for the political donations, prosecutors said.
Wong is in charge of preparing the Kalihi-based company's tax returns. He also played a significant role in Geolabs' political fund raising.
Records with the state Campaign Spending Commission show that Wong and his family contributed $22,500 to the campaigns of Honolulu Mayor Jeremy Harris, former Gov. Ben Cayetano and ex-Maui Mayor James "Kimo" Apana.
The Wongs' contributions were among a maze of Geolabs-linked contributions totaling more than $124,000 to Harris, Cayetano, Apana, former Lt. Gov. Mazie Hirono and ex-Big Island mayoral candidate Fred Holschuh.
In January 2002 the state Campaign Spending Commission fined Geolabs a then-record $64,000 and referred its investigation of the company and the Harris campaign to city Prosecutor Peter Carlisle for criminal prosecution.