Cheek Defense Fails Again

[LPC]

I don't remember ever hearing about this defendant before, but he can safely be put in the "L" column for the Cheek defense.

United States v. Phil Loren Myers, 2007 TNT 219-18, No. 06-11080 (5th Cir. 11/2/2007).

UNITED STATES OF AMERICA
Plaintiff-Appellee
v.
PHIL LOREN MYERS
Defendant-Appellant

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

Summary Calendar

Appeal from the United States District Court
for the Northern District of Texas
USDC No. 4:05-CR-194-ALL

Before KING, DeMOSS, and BENAVIDES, Circuit Judges.

PER CURIAM:*

Phil Loren Myers (Myers) appeals his convictions on two counts of willfully failing to file income tax returns. Myers does not dispute that he failed to file income tax returns for 2001 and 2002, when he realized substantial income from a currency trading venture, but he argues that the evidence was insufficient to prove that his failure to file was willful. Myers contends that he sincerely believed, based on his own research, that he was not required to file.

Because the issue was preserved, we review Myers's insufficiency argument to determine "whether, viewing all the evidence in the light most favorable to the verdict, a rational trier of fact could have found that the evidence establishes the essential elements of the offense beyond a reasonable doubt." United States v. Villarreal, 324 F.3d 319, 322 (5th Cir. 2003). "'t is not necessary that the evidence exclude every reasonable hypothesis of innocence or be wholly inconsistent with every conclusion except that of guilt.'" United States v. Williams, 264 F.3d 561, 576 (5th Cir. 2001) (citation omitted).

The evidence showed that Myers filed income tax returns and paid taxes until he lost a dispute with the Internal Revenue Service (IRS) over a tax shelter. Although Myers testified that he believed that the income tax system was voluntary and that he was not required to file, he knew from previous experience that income derived from currency trading was taxable, and he put assets in his wife's name and took other actions designed to protect his property from the IRS. Myers also threatened to take action against the IRS if it continued collection efforts. The above evidence was sufficient to support the jury's determination that Myers willfully failed to file tax returns. See United States v. Cheek, 498 U.S. 192, 201 (1991); United States v. Shivers, 788 F.2d 1046, 1048-49 (5th Cir. 1986).

The judgment of the district court is AFFIRMED.

FOOTNOTE

* Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5TH CIR. R. 47.5.4.

END OF FOOTNOTE

[Demosthenes]

He was a airline pilot.

FOR IMMEDIATE RELEASE DALLAS, TEXAS
CONTACT: 214/659-8600
http://www.usdoj.gov/usao/txn SEPTEMBER 25, 2006

Granbury, Texas, Man Sentenced to 24 Months
in Federal Prison, Without Parole, for Failing to File Income Tax Returns


United States Attorney Richard B. Roper announced that Granbury, Texas, resident, Phil Loren Myers, was sentenced today in Fort Worth, Texas, to 24 months imprisonment and ordered to pay $107,092.00 in restitution as a result of his federal tax conviction in June. A jury found Myers guilty on both counts of a federal indictment charging him with failing to file personal income tax returns in 2001 and 2002. Myers was ordered to surrender to the Bureau of Prisons on October 23, 2006.

At trial, the government presented evidence that during calendar years 2001 and 2002, Myers, a retired Braniff Airlines pilot, had failed to file tax returns after receiving income in excess of $320,000 consisting of profits from his investment in a currency trading business as well as additional taxable income from a pension plan and Social Security.

“The laws are crystal clear: people must pay their taxes. There is no gray area on this issue. For decades, the courts have consistently upheld the tax law. Phil Loren Myers broke the law, and as a consequence, will serve 24 months in federal prison," said Lance Sumpter, Acting Special Agent in Charge of the Dallas IRS-Criminal Investigation office. Sumpter continued, "The prosecution of these cases is key to supporting the IRS overall compliance goals, enhancing voluntary compliance with the tax laws, and promoting fairness and equity in our tax system.”

The investment business was in fact an illegal “Ponzi scheme” run by Ronald Lovelady, of Garland, Texas, under the names Alpha Equities, Grupo Greystone, TXX-01 and Response Equities. Lovelady was convicted and was sentenced last year to five years in federal prison and ordered to pay more than $10,000,000 in restitution to the victims of his crime. Myers, although not charged with knowing involvement in the Ponzi scheme, was one of the first investors and received profits of more than $300,000.00 on an investment in the scheme of less than $10,000.00.

In testimony at trial, Myers admitted that he had quit filing returns in 1984 after losing a civil court case against the IRS. In the years since, he had sent the IRS numerous pieces of correspondence and literature asserting various reasons why he did not have to file a return such as the claims that: he was not subject to the tax laws because he was not a “person subject to taxation” as defined in the tax code, that the IRS was an illegal foreign corporation, that the 16th Amendment was unconstitutional and that IRS returns were illegal because they failed to comply with the Paperwork Reduction Act. He also claimed that he could not be investigated because his name was copyrighted. In finding the defendant guilty after deliberating less than an hour, the jury rejected his claim that these asserted arguments proved Myers did not willfully violate federal laws requiring him to file a tax return.

In addition to Phil Loren Myer's sentencing today, another individual, Manuel Rivas of Dallas, was sentenced for his conviction of willful failure to file income tax returns. Rivas reported to federal prison on September 5, 2006, to serve a split sentence of five months imprisonment to be followed by 150 days of home confinement. Rivas was also ordered to pay $38,717.00 in restitution to the Internal Revenue Service.

U.S. Attorney Richard Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Phillip C. Umphres and Alan Buie.

[Nikki]

In the years since, he had sent the IRS numerous pieces of correspondence and literature asserting various reasons why he did not have to file a return such as the claims that: he was not subject to the tax laws because he was not a “person subject to taxation” as defined in the tax code, that the IRS was an illegal foreign corporation, that the 16th Amendment was unconstitutional and that IRS returns were illegal because they failed to comply with the Paperwork Reduction Act. He also claimed that he could not be investigated because his name was copyrighted.

AHA The Internet defense

[.]

Man Sentenced to 24 Months in Federal Prison, Without Parole

What kind of stupid stuff is that? There's no such thing as federal parole.

Either he's a good boy while under lock and key and gets his 15% good-time or he doesn't, unless there's some way I haven't heard of to eliminate the possibility of good-time.