A 51-year-old firearms merchant has been indicted by a federal grand jury for allegedly evading income taxes.

Arthur Lee Ong was charged Wednesday with conspiracy to defraud the United States and six counts of tax evasion from 2000 through 2005.

A statement from U.S. Attorney Florence Nakakuni said Ong owns Thunder Bug Inc., which operates in Hawai'i as Magnum Firearms.

Ong is accused of failing to report income from sales of firearms and related products to federal, state, county and military agencies, and the public. It said Ong created multiple entities and fraudulently attributed income to them instead of himself.

He faces a maximum of 35 years in prison if convicted on all seven charges. His arraignment is Wednesday.