Not-Guilty Plea Entered in Tax Refund Scheme : Owner of Preparation Company Faces Charges

Gerry G. Sonido Jr., who federal authorities allege masterminded a tax refund fraud scheme that lured 444 clients by promising them refunds totaling nearly $1.1 million, pleaded not guilty Wednesday to one count of conspiracy and 16 counts of filing false tax claims.

Each of the charges, contained in a federal indictment that was unsealed Tuesday, carries a penalty of five years in prison and a fine of up to $10,000. Three others connected to Sonido Tax Accountants-Consultants in National City, including Sonido’s wife, Eleanor, pleaded not guilty to one count each of conspiracy Tuesday.

Sonido’s bail was set at $500,000 by U.S. Magistrate Irma E. Gonzalez, who also refused to grant Sonido’s request for a court-appointed lawyer. Sonido and the three others are scheduled to appear in court Monday for motion and trial-setting.

In a related matter, Gonzalez named a court-appointed attorney for Emmanuel P. Bognot, a Navy chief electronics mate who served as Sonido’s “tax estimator.” Bognot said in court that he “had nothing to do with” the alleged fraud and that he “only worked part time” for Sonido.

Operated for 3 Months

According to the indictment, Sonido, 48, solicited clients by promising that he could obtain large refunds by filing amended tax returns for 1981, 1982 and 1983.

His firm operated only during the last three months of 1984 but received more than $105,000 in fees during that time, authorities said. Clients--most of whom were Filipino-Americans--were charged fees of between 20% and 50% of their expected tax refunds.

Because Internal Revenue Service investigators--who used an undercover informant to gather information on Sonido’s firm--acted early, only 41 clients received tax refunds, totaling less than $50,000, investigators said.

The majority of the amended returns--327 claiming refunds of more than $896,000--had not even been filed with the government by the time IRS agents seized Sonido’s equipment and records last December.

May Have to Return Money

Some of the clients’ documents, including tax returns, were found in a trash dumpster near the firm’s office by IRS agents.

Seventy-six of the clients’ amended returns claiming refunds of $133,745 were filed with the IRS but no refunds have been issued for those.

Those taxpayers who received the refunds probably will be required to return the money, according to Assistant U.S. Atty. Herbert B. Hoffman.

Bogus deductions were claimed for sales tax, medical expenses, casualty and theft losses, and false income tax credits, including credits for child-care expenses and political contributions, according to the indictment.

Sonido attracted clients by boasting of his tenure as a former IRS agent, a claim federal authorities said was untrue.