POSTED: 10:32 p.m. HST, Feb 07, 2012
LAST UPDATED: 10:35 p.m. HST, Feb 07, 2012
A former Maui resident was indicted by a federal grand jury last week on charges he evaded $500,000 in taxes.
Michael Eric Stewart didn't file income tax returns from 1997 to 2006 despite earning substantial income while soliciting mortgage loans as the owner of Infinity Mortgage Co. on Maui, the indictment said.
He petitioned the U.S. Tax Court to evade paying his taxes in 2006, but the Tax Court ruled against him and fined him $20,000 in 2007, the indictment said.
In 2007, he withdrew about $280,000 from his bank account in 34 separate transactions, all under the $10,000 minimum to evade federal reporting requirements of transactions, according to the indictment.
He also filed his taxes that year for 2001 to 2006 and reported owing $964,317, of which he offered to pay $9,273 as a compromise. The IRS denied his offer.
In 2008, Stewart left Maui for Panama City, Panama.
"We will be actively attempting to secure his presence in court," said Assistant U.S. Attorney Kenneth Sorenson.
The grand jury indicted Stewart on one count of evading tax payments and one of structuring transactions to evade reporting requirements.