Federal prosecutors are recommending that Honolulu telecommunications executive Albert Hee be sentenced to up to four years and three months in prison for skimming about $4 million from his company Waimana Enterprises to pay for his children’s college tuition; false salaries to family members; vacations to Disney World, Tahiti, Switzerland and France; and a million-dollar home in Santa Clara, Calif., among dozens of other personal expenses.

Hee, who was convicted in July on multiple counts of tax fraud for not reporting many of the personal expenses as income, is scheduled to be sentenced Monday by U.S. District Judge Susan Oki Mollway.

Prosecutors say that Hee directed accountants and company employees to classify millions in personal expenses as business deductions or part of a shareholder loan that was never intended to be repaid.

Prosecutors estimate the tax loss at $431,793 in their sentencing report recently submitted to the court. They’re recommending that Hee be sentenced to between three years and five months to four years and three months in prison for tax evasion, obstructing justice and using “sophisticated means” to hide the fraud.

Hee’s attorneys are asking that an evidentiary hearing be held first, however. They say the exact tax loss was never determined at trial.

“The calculation is complex, and in order to be done correctly, requires that the fact-finder analyze admissible evidence of specific amounts against applicable tax laws,” Michael Purpura, an attorney at Honolulu’s Carlsmith Ball, argues on behalf of Hee in documents filed with the court this week.

Prosecutors say such a hearing is unnecessary and recount Hee’s decade-long spending spree in their 26-page sentencing report.

The conviction of Hee has attracted the attention of political and business leaders in Hawaii. Waimana Enterprises, and its subsidiary Sandwich Isles Communications, which provides phone and Internet service on Hawaiian homelands, employed a number of well-known business executives and political figures over the years. Hee is the brother of former state Sen. Clayton Hee.

Company officials also donated several hundred thousand dollars to the Democratic Party and many of Hawaii’s leading politicians over the years, including the late Sen. Daniel Inouye, former Gov. Neil Abercrombie, former U.S. Rep. Colleen Hanabusa, former U.S. Sen. Daniel Akaka and others.

In the sentencing report, signed by lead prosecutor Quinn Harrington, prosecutors portray a scheme by Hee that allowed his companies to escape the scrutiny of the Federal Communications Commission and other regulators.

It’s “noteworthy that defendant used Waimana Enterprises to pay his expenses. Waimana Enterprises was the parent company of Sandwich Isles Communications, a highly regulated telecommunications company that received hundreds of millions of dollars in federal subsidies,” prosecutors write. “In return for the subsidies, Sandwich Isles Communications was subject to annual audits, and the oversight of the FCC, Department of Hawaiian Home Lands, and the state Public Utilities Commission.”

Prosecutors recount trial testimony from Sandwich Isles Board Chairman Robert Kihune that he and Hee sought to keep Sandwich Isles “very clean on its books,” in light of the strict regulations.

“By paying substantial management fees to Waimana, however, the defendant moved federal money to an unregulated company, whose books were not subject to similar audits and review,” prosecutors write. “And by disguising the nature of the expenses, defendant made it difficult to detect his wrongdoing through a review of the company’s books and records.”

The FCC has since launched a new audit and investigation of Sandwich Isles’ finances, and federal and state regulators have suspended the company’s subsidies, which are supported by fees tacked onto phone bills to support rural telecommunication services.

In sentencing documents, prosecutors lay out in detail how Hee spent $4 million in company money. About $1.95 million in personal expenses were deducted as business expenses, and $816,102 was mischaracterized as a shareholder loan, according to court documents. Hee also purchased a $1.3 million Santa Clara home that he claimed was for business purposes, but used by his children while in college.

Much of the money went to Hee’s wife and children to cover college tuition, living expenses and “salaries.” Hee also charged expensive family vacations to the company, as well as massages, jewelry and clothing, according to court documents.

Waimana paid a total of $1.6 million in salaries and benefits to Hee’s wife, Wendy, and their three children, Adrianne, Breanne and Charlton, even though “they did no real work” for the company, according to prosecutors. For much of the time, Hee’s children were full-time students or working full time on the mainland.

For instance, Charlton Hee testified that he earned a salary of between $25,000 and $30,000 a year while he was a student at Santa Clara University. The money “would just show up in (his) account,” he testified at trial. His salary was raised to $50,000 when he graduated in 2012.

Breanne Hee was being paid a full-time salary by Waimana “even while working on the mainland after graduation, including a full-time job at Enterprise Rent-A-Car, and a part-time job at Hyatt hotels,” prosecutors write.

Wendy Hee was on Waimana’s payroll even though she was a homemaker from 2001 until 2013, according to the sentencing report.

As for the Santa Clara home, prosecutors say that Breanne and Charlton Hee immediately moved into the house, “which was within skateboarding distance of SCU.” At one point 11 people, including Hee’s children and friends, were living in the house. Breanne Hee charged rent for the rooms.

“Defendant agreed that having the house relieved him of the obligation to pay his children’s housing costs, but claimed he ‘never thought about it that way,’” according to the report.

Hee also bought a $42,699 GMC Envoy that was paid for by Waimana and used by his children while attending Santa Clara University.

Between 2002 and 2012 Hee paid masseuse Diane Doll $96,000 for twice-weekly massages. Hee instructed his assistant, Nancy Henderson, to classify the expenses as “consulting fees.”

“In its simplest form, defendant could have impeded the IRS, or willfully filed false tax returns, by merely failing to report salary paid to him by Waimana. But he did far more to conceal his receipt of substantial money from Waimana,” prosecutors write in recommending a tougher sentence. The “defendant engaged in multiple schemes to siphon money from his company.”