Letter of Apology » Tax Fraud

Judge Refuses To Dismiss Rigas Tax Charges

Dave Westheimer — Wed, 16 Jul 2008 07:01:30 +0000

US District Judge John E. Jones III on Friday refused to dismiss the tax fraud and conspiracy indictment in the Middle District of Pennsylvania against Adelphia Communications founder and former CEO John Rigas and his son, former Adelphia CFO Timothy Rigas. In this case, they are accused of evading about $300 million in personal income taxes. Both men were convicted of securities fraud, bank fraud and conspiracy in the Southern District of New York and are currently serving sentences of 12 and 17 years, respectively (earlier).The Rigases sought dismissal on grounds of double jeopardy and that their acquittal on one wire fraud count in the New York case meant that they didn’t convert Adelphia funds for personal use. But Jones ruled that the Pennsylvania case essentially covers separate offenses and that the acquittal on the wire fraud count did not mean the jury concluded they didn’t defraud Adelphia (Harrisburg Patriot-News).

Final Milberg Defendant Pleads Guilty

Dave Westheimer — Tue, 15 Jul 2008 06:22:02 +0000

Attorney Paul Seltzer on Monday became the final Milberg Weiss (now Milberg LLP) defendant to plead guilty in the racketeering and money laundering case against the firm and its former principals. Seltzer pleaded guilty before US District Judge John Walter in Los Angeles to one count of corruptly endeavoring to obstruct the IRS code. He admitted accepting almost $50,000 from the firm and failing to tell the IRS that he transferred $19,000 of it to Seymour Lazar, the convicted dummy plaintiff in many of Milberg’s class action ~~shakedowns~~ suits. Sentencing is scheduled for November 3. Seltzer faces a statutory maximum of three years in prison but prosecutors will recommend probation (AP/San Jose Mercury News).

Snipes Allowed To Leave US

Dave Westheimer — Thu, 03 Jul 2008 16:18:57 +0000

Over objections from federal prosecutors, US District Judge William Terrell Hodges on Wednesday approved actor Wesley Snipes’ motion (earlier) to be allowed to go to London to do post-production work on one movie and then to Bangkok to start work on another. Snipes is appealing his February conviction on three failure to file misdemeanor tax counts; he was sentenced in April to three years in prison. Judge Terrell also ordered that Snipes be supervised by the Central District of California (Ocala Star-Banner).

Judge Grants IRS Authority To Seek UBS Swiss Records

Dave Westheimer — Wed, 02 Jul 2008 06:22:26 +0000

US District Judge Joan Lenard in Miami on Tuesday granted a DOJ motion to authorize the IRS to issue a John Doe summons to Switzerland-based UBS. The summons will seek the banking records and identites of US citizens with Swiss bank accounts. The move came less than two weeks after former UBS banker Bradley Birkenfeld pleaded guilty to conspiring to help US clients of UBS evade taxes by hiding assets in Switzerland and Liechtenstein. Birkenfeld is cooperating in the investigation (Reuters, DOJ).

Snipes Asks Permission To Film Abroad

Dave Westheimer — Mon, 30 Jun 2008 05:48:45 +0000

Attorneys for actor Wesley Snipes on Wednesday filed a motion in US District Court in Ocala, Florida requesting that US District Judge William Terrell Hodges grant permission for Snipes to go to London to do post-production work on one movie and then to Bangkok to start work on another. Snipes was convicted in February on three failure to file misdemeanor tax counts and sentenced in April to three years in prison. He is free on bond pending appeal but the USAO is challenging that ruling, so expect them to fight this tooth and nail (Ocala Star-Banner).

Birkenfeld Spills The Beans

Solomon Wisenberg — Fri, 20 Jun 2008 11:19:22 +0000

Former UBS banker Bradley Birkenfeld pled guilty in Miami federal court yesterday to a tax-related Klein Conspiracy count. He is cooperating with the government in its probe of UBS. This is going to be a very big case. Money.com has the story here.

Snipes Granted Appellate Bond

Dave Westheimer — Fri, 23 May 2008 05:32:20 +0000

In Ocala, Florida on Thursday, US District Judge William Terrell Hodges granted bond for actor Wesley Snipes pending his appeal of his conviction and sentence. He had been scheduled to surrender to federal prison authorities during the first week of June to begin serving his sentence. Snipes was convicted February 1 on three misdemeanor counts of failure to file federal income tax returns for 1999-2001 but was acquitted on two felony counts and three other misdemeanor failure to file counts. He was sentenced to three years in prison on April 24. Judge Hodges expressed doubt about the merits of Snipes’ appeal but determined that he was not a flight risk (Orlando Sentinel).

Wesley Snipes: Three Years For Three Misdemeanors

Dave Westheimer — Fri, 25 Apr 2008 07:08:12 +0000

Proscutors got what they wanted: In Ocala, Florida on Thursday, US District Judge William Terrell Hodges sentenced actor Wesley Snipes to three years in prison. Snipes was convicted February 1 on three misdemeanor counts of failure to file federal income tax returns for 1999-2001 but acquitted on two felony tax counts and three more failure to file misdemeanor counts. Hodges sentenced Snipes to the maximum of one year on each count, to be served consecutively. He said “these are serious crimes, albeit misdemeanors, because he has a history of contempt over time.” Hodges also sentenced Snipes’ co-defendants Douglas Rosile and Eddie Ray Kahn, both convicted on the felony counts. Rosile was sentenced to 4 years and six months in prison and Kahn was sentenced to ten years in prison. Judge Hodges was obviously not swayed by a large number of celebrities asking him to sentence Snipes to probation. Among them were Woody Harrelson, Judge Joe Brown and Judge Greg Mathis. It’s hard to believe any federal judge would be influenced by requests from the son of Charles Harrison and two TV show judges. Bloomberg, Orlando Sentinel, DOJ (via PR Newswire).

Government Seeks Three Year Sentence For Wesley Snipes

Dave Westheimer — Thu, 17 Apr 2008 07:01:03 +0000

Prosecutors on Monday filed a sentencing memorandum which recommends that actor Wesley Snipes be sentenced to three years in prison and fined $5 million. Snipes was convicted February 1 on three misdemeanor counts of failure to file federal income tax returns for 1999-2001; however, he was acquitted on the two felony counts he faced andon three misdemeanor failure to file counts for 2002-2004. In calling for the maximum sentence and an upward departure from the guidelines for the fine, the government appears to be seeking enhancements for the acquitted charges. Snipes is scheduled to be sentenced on April 24 (Reuters, Snipes sentencing memorandum).

Government Asks To Reinstate KPMG Indictments; Judges Express Doubt

Dave Westheimer — Thu, 27 Mar 2008 06:46:58 +0000

A three-judge panel from the US Court of Appeals for the Second Circuit on Tuesday heard arguments in the government’s attempt to reinstate the indictments of 13 former KPMG LLC executives in what was once the largest criminal tax shelter prosecution in US history. In July 2007 US District Judge Lewis Kaplan dismissed the indictments of 13 out of an original 19 defendants in US v. Stein et al because the government threatened to indict KPMG if the company did not stop paying the defendants’ legal costs despite contractual obligations to do so. The Bloomberg News story indicates that the judges were highly critical of the government’s arguments. While AUSA Karl Metzner contended that a fair trial was still possible and that dismissal of the indictments was “too drastic a sanction” despite Kaplan’s ruling that the government’s actions violated the defendants’ rights, Chief Circuit Judge Dennis Jacobs noted that “time has moved forward” and Judge Peter Hall likened a reinstatement to “putting toothpaste back in the tube”.