Former world kickboxing champion Dennis Alexio is in federal custody on charges of theft of public money, money laundering and tax and wire fraud.
A federal grand jury returned an indictment against Alexio and his wife Nov. 13. The document was filed under seal until the couple appeared in U.S. District Court on Thursday.
Both pleaded not guilty and are scheduled to stand trial on the charges in January.
Alexio, 54, remains in custody pending a bail hearing Monday.
U.S. Magistrate Judge Richard L. Puglisi granted Anitalei D. Alexio release pending trial on a $25,000 unsecured signature bond.
According to the indictment, in 2008, Anitalei Alexio claimed and accepted a $124,088 tax refund for 2007. The IRS later sent her a letter informing her that she was not entitled to the refund and actually owed $171,664 plus $1,739 interest for 2007.
Dennis Alexio sent the letter back to the IRS and, according to the indictment, wrote on it, "That’s a Gift! Where is My Benefit Today?"
The indictment also says that Dennis claimed a $3,106,866 tax refund for 2007. The IRS granted the refund and applied $278,723 of it to back taxes Alexio owed but canceled the remaining $2,828,142 before the money was sent to his bank account.
Then, in 2009, Anitalei Alexio claimed a $726,100 tax refund for 2008. Per her request, the IRS sent $376,100 of it to her checking account and $350,000 to her husband’s account.
The indictment says the IRS determined that the refund was improperly paid, and sent notices to freeze both accounts. One financial institution did freeze Dennis Alexio’s account, but the other institution did not freeze Anitalei Alexio’s account before she emptied it by purchasing five cashier’s checks made payable to herself, her two minor children and a friend.
When Anitalei Alexio tried to cash the two checks made payable to herself at her bank, the bank seized the checks and returned them to the IRS.
The indictment says Dennis Alexio endorsed the two checks that were made payable to his children and converted them to his own use.
