Wesley Snipes Gets Taxed With 3 Years in Prison
It seems that well known actor Wesley Snipes may be heading to prison after being convicted of tax evasion charges. On October 12, 2006, Wesley Snipes, Eddie Kahn, and Douglas Rosile were charged with one count of conspiring to defraud the United States under 18 U.S.C. § 371 and one count of knowingly making or aiding and abetting the making of a false and fraudulent claim for payment against the United States, under 18 U.S.C. § 287 and 18 U.S.C. § 2. Snipes was also charged with six counts of willfully failing to file Federal income tax returns by their filing dates under 26 U.S.C. § 7203.
The United States Attorney alleged that Kahn was the founder of American Rights Litigators, as well as a successor group that purported to help members legally avoid paying income taxes. Rosile, a former accountant who lost his licenses in Ohio and Florida, prepared Snipes’ paperwork. Snipes maintained in letters he wrote to the IRS that he was not obligated to pay taxes, using fringe arguments common to “tax protesters” who say the government has no legal right to collect.
The trial began on January 14, 2008 in the United States District Court for the Middle District of Florida. Snipes sought to distance himself from his two tax-protesting co-defendants and claimed he was the victim of unscrupulous accountants and sincerely believed he didn’t have to pay taxes. Snipes chose to call no witnesses and after a two week trial the case went to the jury. A verdict was returned and Snipes was found guilty on three misdemeanor charges of failing to file tax returns - but jurors cleared him of the more serious felony charges of tax fraud and conspiracy. Snipes’ co-defendants, Rosile and Kahn, were not as fortunate and were convicted on both felony counts of which the actor was acquitted.
Sentencing was scheduled for April 24, 2008. The United States Attorney recommended that Snipes should receive the maximum sentence provided under law of three years. Snipes’ attorneys argued that the sentence was too stiff for a first-time offender convicted of three misdemeanors, and recommended he be given home detention and ordered to perform public service. United States District Judge William Terrell Hodges sided with the government and said Snipes exhibited a “history of contempt over a period of time” for U.S. tax laws. “In my mind these are serious crimes, albeit misdemeanors,” Hodges said. He then sentenced Snipes to three years in federal prison. Kahn, who refused to defend himself in court, was sentenced to the maximum 10 years, while Rosile received 4 1/2 years. Both will serve three years of supervised release.
Snipes is ordered to surrender to federal prison authorities on June 3, 2008, if he isn’t granted bail to appeal the three federal tax convictions. The government argues in a court filing that Snipes is a flight risk and should not be allowed to remain free. Judge Hodges has apparently taken the motion under advisement and will rule on it before the June 3, 2008, date when Snipes is scheduled to surrender to authorities.
If you or a loved one is being accused of federal tax evasion, contact Dallas federal tax evasion attorney
John Teakell.