Sovereign Tax Cheat Sentenced

[Number Six]

NEWTOWN MAN WHO FAILED TO PAY MORE
THAN $320,000 IN FEDERAL INCOME TAXES IS SENTENCED
FOR IMMEDIATE RELEASEOctober 25, 2011David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD J. DUNSEITH, 56, of Newtown, was sentenced today by United States District Judge Christopher F. Droney in Hartford to two years of probation, the first eight months of which DUNSEITH must spend in home confinement, for failing to pay approximately $320,000 in federal income taxes. Judge Droney also ordered DUNSEITH to pay a fine in the amount of $25,000.

According to court documents and statements made in court, DUNSEITH failed to file an IRS Form 1040 for the 2004, 2005 and 2006 tax years. Instead, DUNSEITH declared himself a trust, filed an IRS Form 1041 (U.S. Income Tax Return for Estates and Trusts) for each year in which he disclosed his individual income, but reduced his taxable income to zero because he charged a fee to the trust equal to his total individual income. Also, during the 2004 tax year, DUNSEITH withdrew approximately $161,000 from his Individual Retirement Account and failed to pay early withdrawal penalties on it.

Through this scheme, DUNSEITH failed to pay approximately $320,271 in federal income taxes. To date, DUNSEITH has paid approximately $580,000 in back taxes, interest and penalties to the government.

On July 6, 2011, DUNSEITH waived his right to indictment and pleaded guilty to one count of filing a false tax return.

This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rahul Kale.

http://www.newstimes.com/policereports/ ... 235980.php


"A Newtown financial services manager who attributed his failure to pay taxes to a brief fling with an anti-government movement was sentenced to eight months of home confinement by a federal court judge on Tuesday.

"Richard J. Dunseith embraced the so-called sovereignty movement after the government shut down a Florida company in which he had invested heavily, according his attorney, former federal prosecutor Stanley Twardy.


"At U.S. District Court in Hartford, Twardy told Judge Christopher Droney that the 56-year-old Navy veteran, family man and avid churchgoer deeply regretted "the critical error in judgment" that resulted in his client not paying $320,000 in income taxes for 2004, 2005 and 2006.

"Dunseith, who pleaded guilty in July to filing a false tax return, believed the government acted illegally in closing the Mutual Benefits Corp., Twardy said.

"Subsequent media reports labeled the firm as the biggest Ponzi scheme in Florida history, and the company's founder, convicted felon Joel Steinger, is awaiting trial for allegedly peddling more than $1 billion worth of bogus life insurance policies, according to several Florida newspapers.

"After Mutual Benefits closed, Dunseith traveled with a colleague who had introduced him to the Mutual Benefits deal and became involved with the sovereignty movement, an extremist group that believes the current United States government is illegal, Twardy said.

"The group's members include local cable television talk show host and one-time Danbury mayoral candidate John McGowan.

"Instead of paying taxes, Dunseith declared himself a trust and reduced his taxable income to zero by charging the trust a fee equal to his income, according to the government.

"Dunseith used the money he saved on taxes to purchase precious metals, which he stored in his Newtown home, prosecutors said.

"Numerous friends, relatives, former clients and parishioners at St. Rose of Lima Church, where Dunseith was involved in numerous parish activities, wrote letters to the court seeking leniency.

"'In spite of his present situation, he is still held in high regard by those who know him,' said Monsignor Robert Weiss, pastor of the church, in one letter.

"Droney imposed a sentence of two years' probation, the first eight months on home confinement, and fined Dunseith $25,000.

"Dunseith has already paid $580,000 in back taxes, interest and penalties, according to the government."

[Gregg]

If he bought gold and silver, hoarded it in the basement and then cashed out, he might have actually made a profit, even counting his legal fees. But maybe not, if he has to pay the taxes on the profits.

[Number Six]

And the cable talk show guy cited was also convicted and sentenced:

"The group's members include local cable television talk show host and one-time Danbury mayoral candidate John McGowan."

http://www.newstimes.com/default/articl ... 237989.php


If he put his wealth into precious metals in 2004 as the article indicated, it more than tripled making paying his debts less of a challenge.

Two years of home confinement appears to be a light sentence, based on the federal guidelines.