Rutledges, Beachboys accused of tax evasion

A federal grant jury has indicted Anthony A. “Tony” Rutledge, Sr., Aaron A. Rutledge, and Star-Beachboys, Inc. for alleged tax evasion for Waikiki Beach concession activities dating back to 1992.

The indictment charges the defendants with involvement in skimming “a large portion of the daily cash receipts which were concealed by placing the currency into at least four different safe deposit boxes” at various Hawai‘i banks, according to a news release from U.S. Attorney Edward H. Kubo, Jr.

Neither of the Rutledges, nor a Star-Beachboys spokesman, could be reached for comment last night.

They are charged with conspiracy to defraud the U.S. Internal Revenue Service, and for allegedly falsely blaming the cash-skim scheme on the late Arthur A. Rutledge, former labor leader and father of Anthony A. “Tony” Rutledge, Sr.

Anthony A. “Tony” Rutledge, Sr., 57, and his son Aaron A. Rutledge, 33, are also separately charged with falsely filing income-tax returns on behalf of Star-Beachboys, by “substantially understating reported gross receipts earned by the corporation,” according to the news release.

The elder Rutledge faces maximum penalties of up to eight years in prison and $500,000 in fines, while his son could face up to 13 years in jail and $750,000 for conspiracy, witness tampering and filing a false corporate income-tax return.

Star-Beachboys could face $1 million in fines and probation for conspiracy and assisting in the filing of a false U.S. corporate income-tax return.

Kubo and Eileen J. O’Connor, assistant attorney general of the U.S. Department of Justice Tax Division in Washington, D.C., said indictments are not evidence of guilt, and all defendants are presumed innocent until and unless proven guilty.

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