Former head
of liquidated
tax firm charged

The state Attorney General's Office has charged Manuel L. Valin, the former president of Valin & Co. Inc., with failing to file the company's general excise tax returns for tax years 1996 through 2001.

Valin & Co. did business under the name Tax Consultants before filing for Chapter 7 bankruptcy liquidation on Feb. 1.

In the filing, Valin & Co. listed assets of $580 and liabilities of $39,858.

Valin, one of the owners of the corporation, said yesterday another person was in charge of filing taxes and he couldn't confirm those taxes were paid. However, Valin said he was under the impression the bankruptcy filing would make moot any debts that were owed.

"It's probably a mistake," Valin said. "My attorney told me when I filed bankruptcy that this should be the end of it (for the company's debts)."

Valin said late yesterday he was trying to contact his attorney to get further guidance.

Valin, who is scheduled to be arraigned next Friday in District Court, faces a fine of up to $25,000, imprisonment for one year, or probation for each of the six misdemeanor counts, if convicted. Additionally, the corporation could be fined up to $100,000 a year for each count.

Stephen Hironaka, a criminal tax investigator for the state, served the complaint Wednesday at Valin's home. Hironaka said he couldn't disclose the amount that Valin allegedly owes because the information has not yet been made public.

"We are looking at tax preparers all the time as we get complaints," Hironaka said.