United States District Court, D. Hawaii
ORDER DENYING DEFENDANT WAGDY A. GUIRGUIS' MOTION
TO DISMISS COUNTS 4 AND 10 (ECF NO. 50) AND DENYING DEFENDANT
MICHAEL H. HIGA'S JOINDER MOVING TO DISMISS COUNT 7 (ECF
Wagdy A. Guirguis moves to dismiss Counts 4 and 10 of the
Indictment. Defendant Michael H. Higa joins in Defendant
Guirguis' Motion and moves to dismiss Count 7.
Guirguis claims that the Court does not have jurisdiction
over Counts 4 and 10, because they involve purported
activities of Defendant Guirguis with “GMP Guam,
Inc.” He claims GMP Guam, Inc. is a Guam corporation
subject to the Guam Territorial income tax. Defendant
Guirguis argues such charges are subject to exclusive
jurisdiction in the Guam District Court, pursuant to the Guam
Organic Act of 1950, 48 U.S.C. § 1421, et
Higa joins in Defendant Guirguis' Motion and argues that
if the Court lacks jurisdiction over Counts 4 and 10 against
Defendant Guirguis, the Court also lacks jurisdiction over
Count 7, which is brought against Defendant Higa relating to
“GMP Guam, Inc.”
Government opposes the Defendants' Motions.
Government alleges that “GMP Guam, Inc., ” as
charged in the Indictment, is a United States domestic
corporation that is subject to the Internal Revenue Code.
Court finds that there is a sufficient jurisdictional basis
to proceed to trial on Counts 4, 7, and 10 in the Indictment.
Wagdy A. Guirguis' Motion to Dismiss Counts 4 and 10 (ECF
No. 50) is DENIED.
Michael H. Higa's Joinder Moving to Dismiss Count 7 (ECF
No. 55) is DENIED.
Wagdy A. Guirguis is charged in the
Indictment filed on August 31, 2017 (ECF No.
1) as follows:
4 relating to “GMP Guam, Inc.”
against Defendant Guirguis:
In the District of Hawaii, Defendant Guirguis, a resident of
Oahu, did willfully make and subscribe the tax return for GMP
Guam, Inc. in calendar year 2010, which was verified by a
written declaration that it was made under the penalty of
perjury and was filed with the Internal Revenue Service, and
which return he did not believe to be true and correct as to
every material matter for GMP Guam, Inc., Form 1120, filed on
March 6, 2012, where Line 1a reported “gross receipts
or sales” of $15, 000, which understated actual gross
receipts by approximately $1, 344, 000.00, in violation of 26
U.S.C. § 7206(1).
10 relating to “GMP Guam, Inc.”
against Defendant Guirguis:
During the calendar year 2011, Defendant Guirguis was the
president of GMP Guam, Inc., a corporation not expressly
exempt from tax with gross receipts of approximately $1.7
million during the year, with its principal place of business
at Honolulu, Hawaii. He therefore was required by law, after
the close of the calendar year 2011 and on or before March
15, 2012, to make an income tax return, for and on behalf of
the corporation, to the Internal Revenue Service Center, at
Ogden, Utah, or to the person assigned to receive returns at
the local office of the Internal Revenue Service at Honolulu,
Hawaii, stating specifically the items of the
corporation's gross income and the deductions and credits
allowed by law. Well knowing and believing all the foregoing,
he did willfully fail, on or about March 15, 2012, in the
District of Hawaii, to make an income tax return at the time
required by law, in violation of 26 U.S.C. § 7203.
Michael H. Higa is also charged in the Indictment (ECF No.
1), in Count 7, relating to
“GMP Guam, Inc., ” as follows:
On or about March 6, 2012, Defendant Michael Higa, a resident
of Oahu, did willfully aid and assist in, and procure,
counsel, and advise the preparation and presentation to the
Internal Revenue Service, the tax return for GMP Guam., Inc.
on Form 1120, for calendar year 2010. The tax return was
false and fraudulent as to material matters, as follows: Line
1a reported “gross receipts or sales” of $15,
000, in violation of 26 U.S.C. § 7206(2).
August 31, 2018, Defendant Wagdy A. Guirguis filed DEFENDANT
WAGDY A. GUIRGUIS' MOTION TO DISMISS COUNTS 4 AND 10.
(ECF No. 50).
September 6, 2018, Defendant Michael H. Higa filed DEFENDANT
HIGA'S JOINDER, arguing if the Court finds it has no
jurisdiction as to Counts 4 and 10, then the Court ...