On June 12, 2007, Alexio was arrested at his home in Aiea, Hawaii for failing to appear as a witness before a federal grand jury and on an outstanding federal warrant issued in San Francisco for bank fraud. A federal judge in West Virginia had issued a warrant for his arrest on April 20 when he failed to appear as summoned to testify in a fraud case.
Dennis Alexio was arrested by federal agents at a coffee shop in Aiea on November 21, 2013 and his wife, Anitalei Alexio, was later arrested at their home, the couple being charged with thirty-six counts of filing false tax claims, wire fraud, and money laundering from December 2008 to August 2013. The federal government also accused him of sending false documents to obtain gold bars and coins worth hundreds of thousands of US dollars. Both pleaded not guilty and were scheduled to stand trial on the charges in January 2014. On January 22, 2016, Alexio was found guilty on 28 counts, including tax fraud, theft, and money laundering. He was scheduled to be sentenced on May 5, 2016. On April 27, 2017 Alexio was sentenced to fifteen years in federal prison. He is serving his sentence at FCI SAFFORD.