Grand Jury Indicts 4 in Tax-Return Scheme

A federal grand jury has indicted four San Diegans in connection with a tax-return preparation service described by the government as a “refund mill operation” that lured 444 clients who were promised refunds of nearly $1.1 million.

Because Internal Revenue Service investigators acted early, however, only 41 clients received refunds, totaling less than $50,000, for 1981, 1982 and 1983, according to assistant U.S. Atty. Herbert B. Hoffman. Most of the clients were Filipino-Americans, Hoffman said.

Indicted on one count of conspiracy and 16 counts of filing false tax claims to the government was Gerry G. Sonido Jr., 48, owner of Sonido Tax Accountants-Consultants in National City.

Indicted on one count each of conspiracy were Rosemarie Belle Hernando, Emmanuel P. Bognot and Eleanor A. Sonido, 37, Gerry Sonido’s wife. The indictments were issued last week and were unsealed Tuesday.

The Sonidos were arrested Tuesday afternoon by IRS agents. Eleanor Sonido, the mother of a month-old baby and two teen-agers, was described by government officials as an undocumented alien and a flight risk. She was arraigned and ordered held without bail by U.S. Magistrate Irma E. Gonzalez.

Gerry Sonido is scheduled to be arraigned today.

Hernando and Bognot were arrested Tuesday morning and pleaded not guilty. Hernando, 33, was office manager of the firm and Bognot, 39, is a Navy chief electronics mate who served as a “tax estimator” for the firm. Bond for each was set at $5,000.

IRS investigators began looking into the Sonido business last November after receiving a tip that his service was promising guaranteed income-tax refunds for amended returns.

An IRS undercover informant identified as “33024X” was paid $2,000 to pose as a tax-preparation client at the firm late last year, according to a 23-page affidavit filed by IRS agent Roman Chavez.

The informant, who recorded his conversations with members of Sonido’s firm, was allegedly told by Bognot that “you don’t have to be very (exact). . . . This will help us (itemize) your deductions to jack it up as much as we can.”

Sonido’s clients were charged between 20% and 50% of their expected income-tax refunds. The firm generated about $105,000 in receipts in the last three months of 1984, authorities allege.

While the 444 clients were promised refunds totaling nearly $1.1 million, less than 5% of that money was actually paid out by the government.

The majority of the amended returns, 327, claimed total refunds of $896,188, but had not even been filed with the government by the time IRS agents seized Sonido’s equipment and records last December.