According to the plea agreement, defendant Haruo Esang will be pleading guilty to count one of the felony tax fraud and count 34 of the conspiracy to commit fraud.
In exchange of Esang’s plea, all remaining counts will be dismissed and the sentence of five years imprisonment against him will be dismissed by the Attorney General’s Office.Esang will also be remitting to the Palau National Treasury ½ of the principal amount of taxes owed in arrears by GF Automotive Enterprise, GF Auto Repair Service and GF Auto Parts.The plea agreement stated that the principal amount of taxes owed is $82,249.72 and Esang is ordered to pay half of that which is in the amount of $41, 124.64.The agreement also stated that Esang within the five-year probationary period, pay to the national treasury half of the civil penalty required which is in the amount of $20,562.32.It also noted that Esang will be on active probation for his entire suspended sentence and if all taxes and civil penalties are paid prior to the end of his suspended sentence, the Republic will not oppose a motion for early discharge of said suspended sentence and expungement of the record.The plea agreement also said that upon the date of the execution of the plea agreement the company should comply with the Foreign Investment Act. Earlier Esang was charged with conspiracy, violations of the Foreign Investment Act, money laundering, aiding and abetting felony tax fraud and felony tax fraud.Taiwanese national Ching-Hua Lin meanwhile faced 16 counts of aiding and abetting felony tax fraud, 19 counts of conspiracy, Three counts of violation of the Foreign Investment Act and three counts of money laundering.Esang is facing 16 counts of felony tax fraud, 19 counts of conspiracy, three counts of aiding and abetting a violation of the Foreign Investment Act and three counts of money laundering.
