2002 mayoral candidate pleads guilty to tax fraud

LIHU‘E — Former Kaua‘i resident Dennis Nimkie, an unsuccessful candidate for Kaua‘i mayor in 2002, pleaded guilty to tax fraud in Honolulu federal court on Wednesday, federal investigators said.

A federal grand jury indictment from July 2008 states Nimkie, while still on Kaua‘i and doing business as Tax Preparation of Kaua‘i, Inc., prepared “false and fraudulent” tax forms for at least 10 people, resulting in under-reporting of taxes due by some $154,000 from 2002 to 2005.

Nimkie pleaded guilty Wednesday to one count of aiding and assisting in the preparation and presentation of false tax returns, and is scheduled to be sentenced in January, federal Internal Revenue Service special agents said.

In exchange for Nimkie’s guilty plea, U.S. attorneys dropped 25 other counts from the July 2008 federal grand jury indictment.

Nimkie, 67, who is believed to be living in the Phoenix area, remains free on bail.

Judge J. Michael Seabright found Nimkie guilty after Nimkie on Wednesday withdrew his original plea of not guilty.

Nimkie faces a maximum penalty of three years in prison and a $100,000 fine when he is sentenced.

Federal IRS special agents in the criminal investigation division worked on the case, said Jonathon Dittman, IRS criminal investigation special agent.

Pamela Byrne represents Nimkie.

Ronald G. Johnson, chief of the Major Crimes Section in the Honolulu U.S. attorney’s office, represents the United States of America.

Nimkie in his years on Kaua‘i was involved in several businesses and active in charities and service clubs.

Nimkie placed fourth among four candidates in the 2002 primary election for Kaua‘i mayor in a race that included the late Bryan Baptiste, Ron Kouchi and Randal Valenciano.

Valenciano was third, and Baptiste beat Kouchi in the two-person, 2002 general election.