Monday, January 14, 2008
Wesley Snipes Tax Fraud Trial Begins Today
Actor Wesley Snipes' tax fraud trial begins today in Ocala, FL. Ellen Podgor (Stetson) of our sister White Collar Crime Prof Blog has a roundup of the issues in the case. For press and blogosphere coverage, see:
- Associated Press: Wesley Snipes Tax Trial to Begin in Fla., by Travis Reed
- New York Times: Wesley Snipes to Go on Trial in Tax Case, by David Cay Johnston
- Pajamas Media: Wesley Snipes, the IRS and the Black James Bond, by Roger L. Simon
- Reuters: Snipes Owed Taxes on $38 Million, U.S. Says, by Barbara Liston
- Tampa Tribune: Ocala Rejects '"Pejudice", by Thomas W. Krause
- Tampa Tribune: Snipes' Attorney Says Client Just Asking IRS Questions, by Thomas W. Krause
For prior TaxProf Blog coverage, see below the fold:
- Court Denies Wesley Snipes' Request for Change of Venue (1/8/08)
- Wesley Snipes' Defense: It Can't Be Tax Fraud Because the IRS Didn't Pay My Bogus Refund Claims (12/14/07)
- Wesley Snipes Seeks Change of Venue in Tax Fraud Trial from Ocala, FL to NYC to Avoid "Hotbed of Klan Activity" (11/9/07)
- Wesley Snipes Fires His Attorney, Gets Delay in Tax Evasion Trial (10/11/07)
- WSJ: Government Can Prosecute Wesley Snipes for Tax Fraud Because He's Famous (Not Because He's Black) (9/12/07)
- Judge: Government Is Prosecuting Actor Wesley Snipes for Tax Fraud Because He's Famous, Not Because He's Black (9/8/07)
- Actor Wesley Snipes Plays Race Card in Tax Fraud Case (6/11/07)
https://taxprof.typepad.com/taxprof_blog/2008/01/wesley-snipes-t.html
Try this on for size, being "Blade" must have dulled his senses, because Mr. Snipes ignored the advice of his former tax adviser, Kenneth Starr, when electing not to file tax returns. Somehow I thought Wesley was smarter than what I'm seeing from his trial in Ocala, Florida.
In the trial his former tax adviser, Kenneth Starr, head of Starr and Company, testified that he had a 90-minute telephone conversation with Snipes trying to convince him that he had to pay taxes.
The Orlando Sentinel reports:
"(Snipes) was adamant about the fact that he did not have that obligation," Starr said. "I said that was ridiculous; that everyone has that obligation. He said he had spoken to some people that said he didn't have to."
Starr, who regularly represents celebrities, said he and Snipes had a good relationship before the actor stopped believing in taxes. "He said, 'You always think you're right and you always think you know everything. You're not right about this,"' Starr recalled of his pivotal 2000 phone call with Snipes.
The next day, Starr sent a letter terminating his tax services with the actor.
Snipes' defense said Starr never told the actor in writing it would be illegal to stop paying taxes. Starr said he didn't have to; he told Snipes on the phone and needed nothing further to terminate their tax arrangement.
The simple challenge here for proof of guilt or innocence (at least in the mind of the jury) is - did Wesley Snipes know what he was doing when he refused to file and pay his taxes. Looks like, at least from what has been seen thus far, the answer is a resounding - YES!
I can understand the possibility of falling prey to bad advice (and Eddie Kahn gives BAD ADVICE) but when you couple that with the advice from your former tax adviser who testified that he advised you not to follow Kahn...well, Wesley - gotta say it doesn't look good for the home team here.
Some call it "Club Fed." Let me state from personal experience - it is FED - it is NO CLUB. Prison is not fun and I would wish no one that experience. But, having been there and hence speaking from experience, since every choice has a consequence - it is important to be conscious of the choices we make as each will produce results - bad choices yield negative consequences - good choices yield positive results.
I wish the best for Wesley, but would be shocked if he is not convicted of tax fraud.
Posted by: Chuck Gallagher | Jan 19, 2008 8:08:57 AM