A Oahu resident faces up to 10 years in prison and a $25,000 fine after pleading no contest to one count of theft in the first degree in Circuit Court on Friday after he went on a spending spree when an erroneous tax refund was sent to his account.

He will be sentenced on June 9.

According to the State Tax office, Tarry Limakade filed his 2006 income tax return and received a refund of $27,904, which was deposited electronically into his bank account.

When he discovered the large refund amount he contacted his tax preparer who discovered a typographical error on the tax return.

The preparer immediately prepared an amended return and told Limakade to file the amended return showing the correct refund of $77 and to send back the initial refund of $27,904 to the Tax Department.

Instead, Limakade went on a spending spree by moving to a better apartment and purchasing an Xbox 360, a 2002 Kia and a Suzuki XL-7 (both used automobiles) and clothing.

It is the state department's second tax case prosecuted for refunds deposited electronically into a person's bank account. In each case the money was spent instead of returned and each defendant knew the returns were filed incorrectly.

In the prior case, Christopher Burns was extradited from Florida and was unable to post $10,000 bail. He spent over seven months in prison until he was sentenced this past February and has to repay over $71,000.

The State Attorney General's Office filed a motion opposing the no contest plea stating, "The nolo contendere plea would not be appropriate because of the serious nature of the crime".

The theft charge is a Class B felony.