Car dealer and 2 plead not guilty to tax fraud

Car dealer Charles Alan Pflueger, his executive assistant and the chief financial officer of the auto dealership pleaded not guilty to tax fraud charges yesterday in U.S. District Court.

A U.S. magistrate judge granted Pflueger, Julie Ann Kam and Randall Ken Kurata release on $100,000 unsecured signature bond pending trial in May. They, along with Pflueger's father, James Henry Pflueger, and Los Angeles accountant Dennis Lawrence Duban, face charges that they conspired to have the dealership pay the Pfluegers' personal expenses without reporting the payments as income.

Alan Pflueger's lawyer, William McCorriston, said his client relied on tax advisers, and "if mistakes were made, they were unintentional." He said the case should be a civil tax matter, and he does not understand why the government is pursuing a felony prosecution.

Kam faces additional charges that she underreported her income as Alan Pflueger's executive assistant in 2004 and 2005; Kurata, for filing false tax returns for Pflueger Inc. and James Pflueger; and Duban, for concealing from the IRS proceeds of property the elder Pflueger sold in California in a Swiss bank account.

James Pflueger and Duban pleaded not guilty Monday and are also free on $100,000 signature bonds.