Hawaii Couple Sentenced in Nationwide Tax Refund Fraud Scheme

Summary

A Hawaii husband and wife have been sentenced to prison for their roles in a nationwide tax fraud scheme that deceived the Internal Revenue Service (IRS) into issuing a fraudulent tax refund of nearly $200,000. Beverly Braumuller-Hawver and Scott Hawver, of Ewa Beach, Hawaii, were sentenced to 16 months and 24 months in prison, respectively.

According to court documents and evidence presented at trial, the couple participated in the scheme from approximately February 2015 through November 2018. They paid a promoter fees for fraudulent tax documents, used those documents to file an amended 2014 tax return, obtained a $192,845 IRS refund, and then took steps to prevent the government from recovering the money.

Key Details of the Case

How the Hawaii Tax Refund Fraud Scheme Worked

Fraudulent Tax Documents

From approximately February 2015 through November 2018, Beverly Braumuller-Hawver and Scott Hawver participated in a fraudulent tax refund scheme by paying a promoter a series of fees in exchange for fraudulent tax paperwork.

Using those materials, the couple filed an amended 2014 tax return with a fabricated IRS Form 1099-MISC.

The document falsely stated that a mortgage company had paid Hawver $749,163 in income and withheld $424,163 in federal taxes.

Nearly $200,000 Refund Issued by IRS

The fictitious federal tax withholding claim caused the IRS to issue the Hawvers a $192,845 tax refund that they were not entitled to receive.

After receiving the refund, the couple moved quickly to place the funds beyond the government’s reach.

The case therefore involved both the alleged fraudulent acquisition of the tax refund and subsequent efforts to move and protect the proceeds when the IRS sought to recover them.

Hawvers Moved the Fraudulent Refund

Transfer to BeverlyB Music LLC

The Hawvers deposited the U.S. Treasury check into a newly opened bank account.

Within days, they transferred $170,000 into a separate account held in the name of BeverlyB Music LLC, an unrelated music business operated by the couple.

On the same day, the Hawvers used the BeverlyB Music account to pay co-conspirators more than $70,000 for their roles in the scheme.

Purchase of Gold and Silver Coins

Braumuller-Hawver subsequently wired $22,000 from the BeverlyB Music account to a jeweler to purchase gold and silver coins.

The transactions occurred as the government sought to recover the fraudulent tax refund.

The movement of funds through another business account, payments to co-conspirators, and purchase of precious metals were part of the conduct presented in the case.

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Efforts to Prevent IRS Recovery

Frivolous Correspondence and Tax Court Petition

When the IRS began seeking recovery of the fraudulent refund, the Hawvers allegedly took additional steps rather than simply ignoring the government’s collection efforts.

They sent scripted, frivolous correspondence to the IRS and filed a petition in U.S. Tax Court in an effort to thwart collection.

They also participated as plaintiffs in multiple frivolous civil Racketeer Influenced and Corrupt Organizations (RICO) lawsuits against IRS employees involved in carrying out their duties.

Federal Jury Convictions

In March 2026, a federal jury convicted Beverly Braumuller-Hawver and Scott Hawver of conspiring to defraud the IRS.

Braumuller-Hawver was additionally convicted of:

• Filing a false tax return
• Money laundering

The convictions followed the government’s prosecution of the couple for their roles in the tax refund fraud conspiracy.

Prison Sentences and Restitution

Hawaii Couple Sentenced

Beverly Braumuller-Hawver was sentenced to 16 months in prison, while Scott Hawver was sentenced to 24 months in prison.

Chief District Judge Derrick K. Watson also ordered the couple to jointly and severally pay $182,438.37 in restitution to the United States.

The restitution order requires both defendants to be responsible for the specified amount owed to the government.

Financial Impact of the Scheme

The case involved a fraudulent tax refund of $192,845. The government’s restitution order was set at $182,438.37.

The prosecution also established the movement of substantial amounts of the refund through BeverlyB Music LLC, including payments to co-conspirators and the purchase of gold and silver coins.

Nationwide Tax Fraud Scheme Involved More Than 200 Participants

Scheme Extended Across 19 States

The Hawvers were among numerous defendants prosecuted by the Department of Justice in connection with the broader nationwide tax fraud scheme.

According to the information provided, the scheme involved more than 200 participants across at least 19 states.

The operation used fraudulent tax paperwork and other methods to obtain tax refunds from the government. The prosecution of participants has resulted in multiple prison sentences.

Main Promoters Sentenced

In 2022, the principal promoters of the nationwide scheme received significant prison sentences:

• One main promoter was sentenced to 11 years in prison.
• Another was sentenced to more than 8 years in prison.
• A third was sentenced to 51 months in prison.

The sentences formed part of the government’s broader prosecution of the nationwide tax fraud operation.

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Hawaii Operation Led by Rosemarie Lastimado-Dradi

“Escrow Trust Refund” Program

In Hawaii, the scheme was organized and led by Rosemarie Lastimado-Dradi.

According to the information provided, Lastimado-Dradi marketed the operation as the “Escrow Trust Refund” program, recruited clients including the Hawvers, and directed portions of their fraudulent refunds into accounts associated with fictitious business entities and purported trusts.

Her cut of the fraudulent refunds reportedly ranged between 25% and 40%.

Lastimado-Dradi Sentenced in January 2026

In January 2026, Lastimado-Dradi was sentenced to a total of 9 years in prison.

Other Hawaii participants in the nationwide scheme also received substantial prison sentences.

These prosecutions form part of the government’s continuing enforcement against participants in the broader tax fraud operation.

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Justice Department Fraud Enforcement

National Fraud Enforcement Division

The announcement was made by Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division and the U.S. Attorney for the District of Hawaii.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division, also referred to as the Fraud Division.

The division is focused on investigating and prosecuting fraud committed against the American people.

Task Force to Eliminate Fraud

The Department’s efforts to combat fraud support the administration’s Task Force to Eliminate Fraud, described as a whole-of-government initiative chaired by Vice President J.D.

The enforcement effort reflects the government’s broader focus on investigating schemes that seek to defraud federal programs and taxpayers.

Why the Hawaii Tax Fraud Case Matters

The Hawaii prosecution illustrates how a fraudulent tax refund scheme can involve multiple stages, from creating false tax documentation to obtaining an improper refund and subsequently moving the proceeds.

The case also demonstrates the government’s prosecution of participants who allegedly attempted to obstruct recovery of fraudulent tax proceeds through financial transfers, precious-metal purchases, frivolous filings, and litigation.

The broader investigation has resulted in prosecutions involving more than 200 participants across at least 19 states, including multiple defendants in Hawaii.

To read the original order please visit DOJ (Department of Justice) website.