The Snipes Trial

[The Observer]

I'm actually kind of glad Snipes is going through this ordeal, as f'd up as that sounds.

Next time those special-needs children at YouTube try to sell me on the idea that you don't have to pay taxes, I can just turn around and say:

"Two words: Wesley Snipes"

I would bet their rebuttal would be along the lines that since Mr. Snipes is a 14th Amendment citizen, his conviction does nothing to show that the special-needs are liable for taxes.

[Truthstalker]

Larken is looking for someone in Ocala.

Dear Subscriber,

I just learned that there is still a heap of those "861 Evidence"
mini-CDs at a warehouse. In the near future, anyone who wants to
pay postage for a box or a case can have them. However, right NOW
what we're looking for is someone in the vicinity of Ocala,
Florida, where the Wesley Snipes trial is happening, who wants to
wander around outside the courthouse there handing out "861
Evidence" mini-CDs. We'll ship a case (there are 1,200 disks in a
case) to the first person who is able to do that.

Be warned, I have no idea how that trial is going. I haven't heard
a peep, so as far as I know, it may be over any second now, or it
may drag on for another week. But if you have the time and energy
to stand around handing out mini-CDs in Ocala, send an e-mail to
"help861@itcds.com" and let them know where to ship the disks.
Don't e-mail me, because I don't have the disks. And for right now,
send an e-mail ONLY if you can hand out mini-CDs at the Ocala
courthouse; if you want some 861 mini-CDs for anything else, in a
couple days I'll tell you how to get them.

Sincerely,


Larken Rose

http://www.861.info

[Dr. Caligari]

Can you say "jury tampering," boys and girls?
I *knew* you could!

[Famspear]

At

http://www.thesnipestrial.com/?p=11

J.J. MacNab wrote:

Based on the above, Snipes grossed roughly $38 million during the six year period in question. Assuming that his deductible expenses were roughly the same percentage that they were in prior tax years, and assuming an effective federal income tax rate of 30%, Snipes’ tax bill could exceed $11,369,000, not including significant compound interest and penalties.

I have done an alternative calculation for 1999 through 2004. It's more aggressive (i.e., aggressive in favor of the tax collector and against Snipes). I assume zero deductions other than the standard deduction (and with the personal exemption phased out) for the years 1999 through 2004. I am assuming that the IRS would assert both regular income tax and self-employment (SE) tax, as well as penalty for underpayment of estimated tax, penalty for failure to timely file, and penalty for failure to timely pay, plus interest.

In my haste I computed the interest and penalties only on the regular tax, so the interest and penalties are understated here (though I am showing both the regular income tax and the SE tax).

I come up with total taxes (regular & self-employment) for 1999 through 2004 of about $14,826,464.

Interest (on the regular tax and penalties) of about $6,879,993 (through January 31, 2008).

Penalties of about $6,670,785.

Total taxes, interest and penalties of about $28,377,242.

Of course, Snipes would undoubtedly come up with some deductions.

[Famspear]

from the Orlando Sentinel

January 17, 2008

http://www.orlandosentinel.com/communit ... 4289.story

(excerpt)

Wesley Snipes' lawyer in Ocala courtroom: Anti-tax schemers exploited actor

by Stephen Hudak

Wesley Snipes' lawyer described the star as "the boy who made good" and a victim of anti-tax schemers during opening remarks Wednesday in the actor's tax-evasion trial.

"He has never, ever been a cheat," defense lawyer Daniel Meachum said of Snipes, who has Orlando roots. "He has never, ever been a tax protester."

[ . . . ]

Interim U.S. Attorney Robert E. O'Neill outlined the government's case using computer-projected graphics that charted the actor's earnings and a timeline of his relationship with co-defendants Douglas Rosile, 59, and Eddie Ray Kahn, 64.

[ . . . ]

"Its focus was to thwart the processes of the IRS," O'Neill said.

O'Neill said the group [ . . . ] espoused a "gibberish kind of idea" that Americans are not required by law to pay taxes on wages and income earned on U.S. soil.

He told jurors they would be presented with hundreds of pages of documents collected by IRS investigators in their probe of Kahn's group and of Snipes, who paid no federal taxes on $38 million he earned from movies and investments from 1999 through 2004.

Robert Bernhoft, one of six lawyers defending Snipes, disputed the prosecutors' claims during a 45-minute address to the all-white jury.

Bernhoft said Snipes had not intended to join an anti-tax movement, but instead paid Kahn's group for tax and investment advice because he was dissatisfied with Starr & Co., the New York firm that had handled those affairs for him.

[ . . . ]

Unfortunately, according to the lawyer, Kahn's group also betrayed and exploited Snipes -- confusing him with legal opinions that he owed no federal taxes and also was due a hefty refund for past overpayments.

Although prosecutors say Snipes dodged taxes by filing "frivolous correspondence," Bernhoft said the actor repeatedly sought answers from the IRS, seeking a meeting and an explanation of what he owed.

He even asked for an audit.

"Not too many people ask for an audit," Bernhoft said. "Welcome to the wacky world of the IRS."

He reminded jurors that, if acquitted of all charges, Snipes still would be required to pay taxes -- and penalties.

David Wilson, lawyer for co-defendant Rosile, told jurors his client did not try to defraud the government when he prepared documents for Snipes that sought a $7 million refund.

Kahn, who has rejected court-provided counsel and called the proceedings a sham, spoke briefly to the panel, telling them he was not participating.

[ . . . ]

Federal agents consider both men to be tax protesters. According to court records, Rosile was stripped of accounting licenses in Ohio and in Florida, and Kahn previously served a prison term for a tax-related crime in Texas.

[ . . . ]

The trial continues to lure an odd collection of spectators to the federal courthouse in Ocala.

Fans of the film star shout their support to him and snap photos with camera phones as he arrives and leaves each day.

On Wednesday, a Marion County tax-accounting firm also used the forum to stump for business.

"If people do their taxes, they won't end up here," said Judy Hotaling, owner of Liberty Tax Service, whose employees dressed in green gowns to resemble the Statue of Liberty and distributed T-shirts and foam crowns.

(bolding added)

[Famspear]

Excerpt, from

Ocala Star-Banner

at

http://www.ocala.com/article/20080116/B ... source=RSS

on 16 January 2008

Lawyers: Snipes schemer or victim in tax case

BY RICK CUNDIFF
STAR-BANNER

OCALA -- Actor Wesley Snipes was either a willing participant in a conspiracy to defraud the government of millions of dollars or a victim of bad advice from his tax advisors and threatening tactics of the Internal Revenue, according to lawyers at his trial Wednesday.

After two days of jury selection, jurors heard the first information Wednesday in the trial of Snipes and codefendants Eddie Ray Kahn and Douglas Rosile on tax evasion charges.

[ . . . ]

In opening statements, federal prosecutor Robert O'Neill portrayed Snipes as a man who deliberately filed false documents with the IRS and failed to file tax forms for years while conspiring with codefendant Kahn and Rosile to defraud the government.

"Snipes, Kahn and Rosile agreed to defraud the United States by not paying taxes due," O'Neill said.

Defense lawyers portrayed Snipes as a hardworking artist, dedicated to his family, a displaced victim of the Sept. 11, 2001 terrorist attacks on New York City, and an unwitting pawn of bad tax advisors.

Lawyer Daniel Meachum said Snipes hired Kahn's American Rights Litigators organization, based in Mount Dora, to provide him with tax advice.

"Of the thousands of documents that you will see, Wesley Snipes is one amongst thousands of clients that they served," Meachum said. "Wesley Snipes has never had any intention to defraud the government. He has never been a conspirator. He has never been a tax protester, and he has never been a cheat. He has never, ever, defrauded anyone."

Snipes fired Meachum in October, alleging ineffective assistance of counsel. Senior U.S. District Judge William Terrell Hodges required Snipes to waive that claim on the record Wednesday before allowing Meachum to rejoin the case.

Meachum called Snipes "the epitome of the American Dream," portraying him as a dedicated son who bought his mother and grandmother a home in an upscale Orange County (Fla.) neighborhood.

[ . . . ]

"Wesley Snipes is the one who has been betrayed by many, not all of whom are sitting at the defendants' table today," he said. Snipes also was deeply affected by the Sept. 11, 2001 terrorist attacks on the World Trade Center, he added.

"(He) lived in lower Manhattan until the tragedies of 9/11, that not only destroyed his home, but nearly killed him," Meachum told jurors.

Snipes himself told U.S.A. Weekend magazine in 2002 that his fourth-floor apartment across the street from the World Trade Center was nearly destroyed, but added that he was in Marina del Rey, Calif. at the time of the attack.

[ . . . ]

"Mr. Snipes actually went to the IRS and he corresponded and said 'audit me,'" Bernhoft said. "This is not a case where the IRS came knocking on Wesley Snipes' door and he ran and hid in a closet."

[ . . . ]

Rosile's lawyer, David Wilson, said in his opening statement that Rosile, unlike Snipes and Kahn, was only making a "cameo appearance" in the case. "There's going to be a huge amount of evidence in this case," he said. "Most of it does not apply to Mr. Rosile."

Kahn attempted to make a brief opening statement to tell jurors why he refused to participate in the trial. He attempted to explain to jurors his belief that Hodges isn't legally a judge, but Hodges, appointed by President Richard Nixon in 1971, quickly cut him off. Kahn declined to make any other statement.

At the end of the day, Kahn asked Hodges if he could be
excused from the rest of the trial. Hodges said he would consider the request overnight.

[ . . . ]

Gee, why is Eddie Kahn asking Judge Hodges for permission? After all, Eddie says Judge Hodges is not even legally a judge, anyway.

[.]

there is still a heap of those "861 Evidence" mini-CDs at a warehouse

Time for the feds to go on a short search-and-destroy mission. And for someone to explain why this junk hasn't already been destroyed.

Isn't Mullet-boy still on probation? Somehow I imagine that the terms might involve something about not promoting his idiotic argument.

[Judge Roy Bean]

"At the end of the day, Kahn asked Hodges if he could be excused from the rest of the trial. Hodges said he would consider the request overnight."

What? And let the jury miss out on seeing Kahn make a fool of himself?

It raises an interesting question for the Snipes team: Do they want to let the jury see Kahn for the goofball he is? Or would they rather let the jury believe their version of what he is?

My head's beginning to hurt.

[Famspear]

from the Ocala Banner-Star story (see above):

Defense lawyers portrayed Snipes as a hardworking artist, dedicated to his family, a displaced victim of the Sept. 11, 2001 terrorist attacks on New York City[ . . . ].

[violin music, sob, choking sounds, sniff, sniff . . . ] Wow, it must have been tough for Wesley Snipes to find a new place to stay after having to go through all that on September 11, 2001 (reportedly having been in Marina Del Rey, California, and not in his New York home, at the time of the attack on New York) -- and especially having to find and pay for a new place to live -- out of the paltry $1,462,762.23 in year 2001 income on which Snipes still has not paid Federal income tax (or the $12.3 million in income for the preceding two year period, on which he also still has paid no Federal income tax).

[Truthstalker]

J.J. MacNab

Points or no points?

[Bud Dickman]

Snipes' former adviser told actor tax position was 'ridiculous'

Travis Reed

Associated Press

6:44 PM EST, January 17, 2008

OCALA

Also Thursday, U.S. District Judge William Terrell Hodges approved Kahn's request to waive his right to appear in court. Kahn has argued several times the government has no jurisdiction to prosecute him here, though he remains on trial.



Copyright © 2008, Orlando Sentinel

[Bud Dickman]

OCALA -- Wesley Snipes threatened to fire an employee who insisted on paying her own federal income taxes after Snipes embraced Eddie Ray Kahn's theories that such payments were voluntary, a former employee of Snipes testified Friday.

Carmen Baker told jurors that she attended a meeting at Snipes' California home in June 2000 at which Kahn presented his tax theory. Baker worked in accounting for Snipes' Amen-Ra Films.

Baker was told to take notes during Kahn's presentation. She questioned Kahn's idea that U.S. citizens don't have to pay income taxes, she said.

"I was told by Mr. Snipes, was I not paying attention? Did I not understand what I was just shown?" Baker said. "I didn't believe it. I thought it was bogus from the beginning."

Snipes and Kahn conferred briefly, and Baker was told to leave Snipes' home and return to her hotel room, she said. She was not allowed to take her notes with her.

Soon after that meeting, Snipes told employees of his company that they would be paid their full gross salaries with no taxes withheld, Baker said. After Baker consulted an accountant who advised her to keep paying her own payroll taxes, Snipes called her on the carpet, she said.

"I got called into the office and I was told that I was being a difficult employee, and told that I should not have called an accountant," she said. "He said 'if you're not going to play along with the game plan, then you need to find employment elsewhere.'"

But Snipes didn't fire Baker and she remained with the company for three more years, she added.

Snipes also directed Baker to be the designated signer on company accounts set up in Nevada, she added. Incorporation documents for Snipes' Kymberlyte Production Services International Inc. listed Baker as president, secretary, treasurer and director of the corporation.

Baker told jurors her signature on that document was forged.

After Baker left Snipes' company in 2003, she was subpoenaed by IRS agents investigating Snipes. The actor contacted her and warned her not to disclose anything, citing a confidentiality agreement she had signed when she went to work for him. Such agreements don't apply to government subpoenas.

"He said if you do contact them, you will have to pay the consequences," she said.

Snipes and codefendants Kahn and Douglas Rosile are each charged with one count of conspiracy to defraud and one count of aiding and abetting the making of a false and fraudulent claim as part of an alleged tax fraud scheme. Snipes also is charged with six counts of willfully failing to file federal income tax returns.

Rick Cundiff can be reached at rick.cundiff@starbanner.com or at 352-867-4130.

http://www.ocala.com/article/20080118/B ... itemapnews

[Doktor Avalanche]

Soon after that meeting, Snipes told employees of his company that they would be paid their full gross salaries with no taxes withheld, Baker said. After Baker consulted an accountant who advised her to keep paying her own payroll taxes, Snipes called her on the carpet, she said.

...

"I got called into the office and I was told that I was being a difficult employee, and told that I should not have called an accountant," she said. "He said 'if you're not going to play along with the game plan, then you need to find employment elsewhere.'"

...

Snipes also directed Baker to be the designated signer on company accounts set up in Nevada, she added. Incorporation documents for Snipes' Kymberlyte Production Services International Inc. listed Baker as president, secretary, treasurer and director of the corporation.

...

Baker told jurors her signature on that document was forged.

After Baker left Snipes' company in 2003, she was subpoenaed by IRS agents investigating Snipes. The actor contacted her and warned her not to disclose anything, citing a confidentiality agreement she had signed when she went to work for him. Such agreements don't apply to government subpoenas.

"He said if you do contact them, you will have to pay the consequences," she said.

Oh crap...

[Weathervane]

The actor contacted her and warned her not to disclose anything, citing a confidentiality agreement she had signed when she went to work for him. Such agreements don't apply to government subpoenas.

Without a doubt, Kahn (pronounced "Con") fed Snipes some nice-sounding bs like "...and if you get your employees to sign a confidentiality agreement, they can't talk to the po-po." Cute.

That's one thing all these farts have in common. If only you're stupid/trusting/greedy/"smart" enough to believe their fairy stories.

Come to think of it, I'd gladly trade 10 IQ points for an ounce of common sense. That'd leave me with a 125 IQ, and exactly one ounce of common sense.

[Demosthenes]

Actually, Kahn is pronounced Cane.

[Weathervane]

Actually, Kahn is pronounced Cane.

There you go again. And its HEDLEY, btw.

[LAprosecutor]

"He said 'if you're not going to play along with the game plan, then you need to find employment elsewhere.'"

. . .

Baker told jurors her signature on that document was forged.

. . .

"He said if you do contact them, you will have to pay the consequences," she said.

Any one of these three pieces of evidence could be a Cheek-defense killer. All three together. . .

[ElfNinosMom]

I tried to leave a comment on Demos' "Snipes Tax Trial" site, but apparently my wordpress login doesn't work there. Most wordpress blogs will let you leave a comment without logging in, by just filling in the information (it has Akismet for spam, which catches most of it).

[Demosthenes]

Oops. I'll fix it, ENM. Thanks for the head's up!

Edit: Should be fixed now.

[ElfNinosMom]

Oops. I'll fix it, ENM. Thanks for the head's up!

Edit: Should be fixed now.

Cool, thanks!