7203 - Bank Records &  Net Worth Increases 1 p4

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Fraud Statutes 

Additional Information:

 

7203 - Accountant-Client Privilege
7203 - Accrual Basis
7203 - Admissibility 1 p1
7203 - Admissibility 1 p2
7203 - Admissibility 1 p3
7203 - Admissibility 1 p4
7203 - Admissibility 1 p5
7203 - Admissibility 1 p6
7203 - Admissibility 2 p1
7203 - Admissibility 2 p2
7203 - Admissibility 2 p3
7203 - Admissibility 2 p4
7203 - Admissibility 2 p5
7203 - Admissibility 3 p1
7203 - Admissibility 3 p2
7203 - Admissibility 3 p3
7203 - Admissibility 3 p4
7203 - Admissibility 3 p5
7203 - Admissibility 4 p1
7203 - Admissibility 4 p2
7203 - Admissions p1
7203 - Admissions p2
7203 - Advice of Counsel p1
7203 - Advice of Counsel p2
7203 - Amendment
7203 - Appeal Right to
7203 - Appeal Timeliness
7203 - Appeal Waiver
7203 - Appeal without merit
7203 - Arrest
7203 - Fraudulent Return
7203 - Defeat & Evade Income Taxes p1
7203 - Defeat & Evade Income Taxes p2
7203 - Defeat & Evade Income Taxes p3
7203 - Defeat &  Evade Income Taxes p4
7203 - Attorney Disqualified
7203 - Attorney's Testimony p1
7203 - Attorney's Testimony p2
7203 - Attorney's Testimony p3
7203 - Attorney's Testimony p4
7203 - Bail
7203 - Bank Records &  Net Worth Increases 1 p1
7203 - Bank Records &  Net Worth Increases 1 p2
7203 - Bank Records &  Net Worth Increases 1 p3
7203 - Bank Records &  Net Worth Increases 1 p4
7203 - Bank Records &  Net Worth Increases 1 p5
7203 - Bank Records &  Net Worth Increases 1 p6
7203 - Bank Records &  Net Worth Increases 2 p1
7203 - Bank Records &  Net Worth Increases 2 p2
7203 - Bank Records &  Net Worth Increases 2 p3
7203 - Bank Records &  Net Worth Increases 2 p4
7203 - Bank Records &  Net Worth Increases 2 p5
7203 - Bank Records &  Net Worth Increases 3 p1
7203 - Bank Records &  Net Worth Increases 3 p2
7203 - Bank Records &  Net Worth Increases 3 p3
7203 - Bank Records &  Net Worth Increases 3 p4
7203 - Bank Records &  Net Worth Increases 3 p5
7203 - Bank Records &  Net Worth Increases 4 p1
7203 - Bank Records &  Net Worth Increases 4 p2
7203 - Bank Records &  Net Worth Increases 4 p3
7203 - Bank Records &  Net Worth Increases 4 p4
7203 - Bank Records &  Net Worth Increases 4 p5
7203 - Bank Records &  Net Worth Increases 5 p1
7203 - Bank Records & Net Worth Increases 5 p2
7203 - Bank Records & Net Worth Increases 5 p3
7203 - Bank Records & Net Worth Increases 5 p4
7203 - Bank Records & Net Worth Increases 5 p5
7203 - Base Sentence p1
7203 - Base Sentence p2
7203 - Base Sentence p3
7203 - Base Sentence p4
I7203 - Bill of Particluar Conspiracy
7203 - Bill of Particulars
7203 - Books and Records
7203 - Burden of going forward with evidence
7203 - Burden of Proof
7203 - Carryback Offset
7203 - Changing Plea
7203 - Character witness p1
7203 - Character witness p2
7203 - Circumstanial Evidence p1
7203 - Circumstanial Evidence p2
7203 - Circumstanial Evidence p3
7203 - Circumstanial Evidence p4
7203 - Collateral Estoppel
7203 - Collection
7203 - Commitment by U.S. Commissioner
7203 - Communication to Jury
7203 - Compromise
7203 - Consolidation
7203 - Conspiracy p1
7203 - Conspiracy p2
7203 - Conspiracy 1 p1
7203 - Conspiracy 1 p2
7203 - Conspiracy 1 p3
7203 - Conspiracy 1 p4
7203 - Conspiracy 1 p5
7203 - Conspiracy 1 p6
7203 - Conspiracy 1 p7
7203 - Conspiracy 1 p8
7203 - Conspiracy 2 p1
7203 - Conspiracy 2 p2
7203 - Conspiracy 2 p3
7203 - Constitutional Grounds 1 p1
7203 - Constitutional Grounds 1 p2
7203 - Constitutional Grounds 1 p3
7203 - Constitutional Grounds 1 p4
7203 - Constitutional Grounds 1 p5
7203 - Constitutional Grounds 2 p1
7203 - Constitutional Grounds 2 p2
7203 - Constitutional Grounds 2 p3
7203 - Constitutional Grounds 2 p4
7203 - Constitutional Grounds 2 p5
7203 - Constitutional Grounds 3 p1
7203 - Constitutional Grounds 3 p2
7203 - Constitutional Grounds 3 p3
7203 - Constitutional Grounds 3 p4
7203 - Constitutional Grounds 3 p5
7203 - Constitutional Grounds 4 p1
7203 - Constitutional Grounds 4 p2
7203 - Constitutional Grounds 4 p3
7203 - Constitutional Grounds 4 p4
7203 - Constitutional Grounds 5 p1
7203 - Constitutional Grounds 5 p2
7203 - Constitutional Grounds 5 p3
7203 - Constitutional Grounds 5 p4
7203 - Constitutional Grounds 5 p5
7203 - Constitutional Grounds 6
7203 - Contempt Finding Ag. Defendant's Counsel
7203 - Continuance p1
7203 - Continuance p2
7203 - Continuance p3
7203 - Conviction Required
7203 - Copies of Records p1
7203 - Copies of Records p2
7203 - Corporation Officer
7203 - Costs
7203 - Credit for Time Served
7203 - Criminal Contempt
7203 - Cross-Examination PART 1 p1
7203 - Cross-Examination PART 1 p2
7203 - Cross-Examination PART 1 p3
7203 - Cross-Examination PART 1 p4
7203 - Cross-Examination PART 1 p5
7203 - Cross-Examination PART 2
7203 - DefendantHaving Facts Available p1
7203 - DefendantHaving Facts Available p2
7203 - DefendantHaving Facts Available p3
7203 - Degree of Proof p1
7203 - Degree of Proof p2
7203 - Depositions
7203 - Different Statute Cited
7203 - Discovery, Scope Of
7203 - Documentary Evidence in Jury Room
7203 - Double Jeopardy 1 p1
7203 - Double Jeopardy 1 p2
7203 - Double Jeopardy 1 p3
7203 - Double Jeopardy 1 p4
7203 - Double Jeopardy 1 p5
7203 - Double Jeopardy 2 p1
7203 - Double Jeopardy 2 p2
7203 - Double Jeopardy 2 p3
7203 - Double Jeopardy 2 p4
7203 - Enhanced Sentence Sophisticated Means p1
7203 - Enhanced Sentence Sophisticated Means p2
7203 - Enhanced Sentence p1
7203 - Enhanced Sentence p2
7203 - Entrapment
7203 - Erroneous calculation of tax
7203 - Exclusion of Oral Testimony
7203 - Exercise Privilege-Exclusion from Courtroom
7203 - Expert Witness p1
7203 - Expert Witness p2
7203 - Expert Witness p3
7203 - Expert Witness p4
7203 - Extenuating Circumstances
7203 - Fact Finding p1
7203 - Fact Finding p2
7203 - Fact Finding p3
7203 - Fact Finding p4
7203 - Fact Finding p5
7203 - Failure of IRS to File Return
7203 - Failure to Assess Tax
7203 - Failure to Prosecute p1
7203 - Failure to Prosecute p2
7203 - Failure to Prosecute p3
7203 - Failure to Prosecute p4
7203 - Failure to Prosecute p5
7203 - Failure to Report Income 1 p1
7203 - Failure to Report Income 1 p2
7203 - Failure to Report Income 1 p3
7203 - Failure to Report Income 1 p4
7203 - Failure to Report Income 1 p5
7203 - Failure to Report Income 1 p6
7203 - Failure to Report Income 2 p1
7203 - Failure to Report Income 2 p2
7203 - Failure to Supply Information
7203 - False Return
7203 - Fictitious names
7203 - Fraud Case Procedures p1
7203 - Fraud Case Procedures p2
7203 - Fraud Case Procedures p3
7203 - Fraud Case Procedures p4
7203 - General Exception
7203 - Good Faith p1
7203 - Good Faith p2
7203 - Good Faith p3
7203 - Good Faith p4
7203 - Government Agent Prosecuting Claim
7203 - Grand Jury 1 p1
7203 - Grand Jury 1 p2
7203 - Grand Jury 1 p3
7203 - Grand Jury 1 p4
7203 - Grand Jury 1 p5
7203 - Grand Jury 2 p1
7203 - Grand Jury 2 p2
7203 - Hearsay Evidence p1
7203 - Hearsay Evidence p2
7203 - Hearsay Evidence p3
7203 - Hearsay Evidence p4
7203 - Hearsay Evidence p5
7203 - Hostility of the Court p1
7203 - Hostility of the Court p2
7203 - Hostility of the Court p3
7203 - Hypnosis
7203 - Identification
7203 - Ignorance of Law
7203 - Immunity p1
7203 - Immunity p2
7203 - Immunity p3
7203 - Impeachment p1
7203 - Impeachment p2
7203 - Improper Comment PART 1 p1
7203 - Improper Comment PART 1 p2
7203 - Improper Comment PART 1 p3
7203 - Improper Comment PART 1 p4
7203 - Improper Comment PART 1 p5
7203 - Improper Comment PART 2 p1
7203 - Improper Comment PART 2 p2
7203 - Improper Comment PART 2 p3
7203 - Improper Comment PART 2 p4
7203 - Improper Comment PART 2 p5
7203 - Improper Comment PART 3
7203 - Improper Question
7203 - Incrimination 1 p1
7203 - Incrimination 1 p2
7203 - Incrimination 1 p3
7203 - Incrimination 1 p4
7203 - Incrimination 1 p5
7203 - Incrimination 2 p1
7203 - Incrimination 2 p2
7203 - Incrimination 2 p3
7203 - Incrimination 2 p4
7203 - Incrimination 2 p5
7203 - Incriminaton Before Grand Jury p1
7203 - Incriminaton Before Grand Jury p2
7203 - Instructions to Jury 1 p1
7203 - Instructions to Jury 1 p2
7203 - Instructions to Jury 1 p3
7203 - Instructions to Jury 1 p4
7203 - Instructions to Jury 1 p5
7203 - Instructions to Jury 2 p1
7203 - Instructions to Jury 2 p2
7203 - Instructions to Jury 2 p3
7203 - Instructions to Jury 2 p4
7203 - Instructions to Jury 2 p5
7203 - Instructions to Jury 3 p1
7203 - Instructions to Jury 3 p2
7203 - Instructions to Jury 3 p3
7203 - Instructions to Jury 3 p4
7203 - Instructions to Jury 3 p5
7203 - Instructions to Jury 4 p1
7203 - Instructions to Jury 4 p2
7203 - Instructions to Jury 4 p3
7203 - Instructions to Jury 4 p4
7203 - Instructions to Jury 4 p5
7203 - Instructions to Jury 5 p1
7203 - Instructions to Jury 5 p2
7203 - Instructions to Jury 5 p3
7203 - Instructions to Jury 5 p4
7203 - Instructions to Jury 5 p5
7203 - Instructions to Jury 6 p1
7203 - Instructions to Jury 6 p2
7203 - Instructions to Jury 6 p3
7203 - Instructions to Jury 6 p4
7203 - Instructions to Jury 6 p5
7203 - Instructions to Jury 7 p1
7203 - Instructions to Jury 7 p2
7203 - Instructions to Jury 7 p3
7203 - Instructions to Jury 7 p4
7203 - Instructions to Jury 7 p5
7205 Convictions p1
7205 Convictions p2
7205 Convictions p3
7205 Convictions p4
7205 Convictions p5
7205 Double Jeopardy
7205 Exemption Certificates
7205 Hostility of the Court
7205 Indictment
7205 Information
7205 Intent to Deceive Lacking
7205 Right to Counsel
7205 Trial, Timeliness
7205 Variance
7205 Venue
7205 Willfulness
7206 False Returns 1 p1
7206 False Returns 1 p2
7206 False Returns 1 p3
7206 False Returns 1 p4
7206 False Returns 1 p5
7206 False Returns 2 p1
7206 False Returns 2 p2
7206 False Returns 2 p3
7206 False Returns 2 p4
7206 False Returns 2 p5
7206 False Returns 3 p1
7206 False Returns 3 p2
7206 False Returns 3 p3
7206 False Returns 3 p4
7206 Basis for Allegation of Fraud
7206 Concealment of Assets p1
7206 Concealment of Assets p2
7206 Conspiracy 1 p1
7206 Conspiracy 1 p2
7206 Conspiracy 1 p3
7206 Conspiracy 1 p4
7206 Conspiracy 2 p1
7206 Conspiracy 2 p2
7206 Constitutionality p1
7206 Constitutionality p2
7206 Constitutionality p3
7206 Costs
7206 Disclosure of Returns
7206 Estoppel p1
7206 Estoppel p2
7206 Estoppel p3
7206 Evidence 1 p1
7206 Evidence 1 p2
7206 Evidence 1 p3
7206 Evidence 1 p4
7206 Evidence 1 p5
7206 Evidence 2 p1
7206 Evidence 2 p2
7206 Evidence 2 p3
7206 Evidence 2 p4
7206 Evidence 2 p5
7206 Evidence 3 p1
7206 Evidence 3 p2
7206 Evidence 3 p3
7206 Evidence 3 p4
7206 Evidence 3 p5
7206 Evidence 4 p1
7206 Evidence 4 p2
7206 Evidence 4 p3
7206 False Claims Against U.S.
7206 False Documents p1
7206 False Documents p2
7206 False Statements in Return 1 p1
7206 False Statements in Return 1 p2
7206 False Statements in Return 1 p3
7206 False Statements in Return 1 p4
7206 False Statements in Return 1 p5
7206 False Statements in Return 2 p1
7206 False Statements in Return 2 p2
7206 False Statements in Return 2 p3
7206 False Statements in Return 2 p4
7206 False Statements in Return 3 p1
7206 False Statements in Return 3 p2
7206 False Statements in Return 3 p3
7206 False Statements in Return 3 p4
7206 False Statements in Return 3 p5
7206 False Statements in Return 4 p1
7206 False Statements in Return 4 p2
7206 False Statements in Return 4 p3
7206 False Statements in Return 4 p4
7206 False Statements in Return 4 p5
7206 False Statements in Return 5 p1
7206 False Statements in Return 5 p2
7206 False Statements in Return 5 p3
7206 False Statements in Return 5 p4
7206 False Statements to IRS Agents p1
7206 False Statements to IRS Agents p2
7206 False Statements to IRS Agents p3
7206 Forgery
7206 Grand Jury
7206 Guilty Plea p1
7206 Guilty Plea p2
7206 Immunity
7206 Indictment 1 p1
7206 Indictment 1 p2
7206 Indictment 1 p3
7206 Indictment 1 p4
7206 Indictment 1 p5
7206 Indictment 2 p1
7206 Indictment 2 p2
7206 Instructions to Jury 1 p1
7206 Instructions to Jury 1 p2
7206 Instructions to Jury 1 p3
7206 Instructions to Jury 1 p4
7206 Instructions to Jury 1 p5
7206 Instructions to Jury 2 p1
7206 Instructions to Jury 2 p2
7206 Instructions to Jury 2 p3
7206 Instructions to Jury 2 p4
7206 Instructions to Jury 2 p5
7206 Instructions to Jury 3 p1
7206 Instructions to Jury 3 p2
7206 Instructions to Jury 3 p3
7206 Instructions to Jury 3 p4
7206 Instructions to Jury 3 p5
7206 Jury Verdict Disregarded
7206 Jury p1
7206 Jury p2
7206 Jury p3
7206 Lesser Included Offense p1
7206 Lesser Included Offense p2
7206 Motion For Continuance
7206 Motion to Sever
7206 Motion to Transfer
7206 Motion to Vacate Sentence
7206 Net Worth Statement
7206 Offer in Compromise
7206 Perjury
7206 False or Fraudulent Returns p1
7206 False or Fraudulent Returns p2
7206 False or Fraudulent Returns p3
7206 False or Fraudulent Returns p4
7206 False or Fraudulent Returns p5
7206 Prior Convictions
7206 Prior Law
7206 Probation
7206 Prosecutor's Comment p1
7206 Prosecutor's Comment p2
7206 Restitution
7206 Right to Counsel p1
7206 Right to Counsel p2
7206 Sentence p1
7206 Sentence p2
7206 Sentence p3
7206 Sentence p4
7206 Sentencing Guidelines 1 p1
7206 Sentencing Guidelines 1 p2
7206 Sentencing Guidelines 1 p3
7206 Sentencing Guidelines 1 p4
7206 Sentencing Guidelines 1 p5
7206 Sentencing Guidelines 2 p1
7206 Sentencing Guidelines 2 p2
7206 Sentencing Guidelines 2 p3
7206 Statute of Limitations p1
7206 Statute of Limitations p2
7206 Venue
7206 Willfulness Defined p1
7206 Willfulness Defined p2
7206 Willfulness Defined p3
7206 Willfulness Defined p4
7207 Conviction
7207 Defenses
7207 Motion to Dismiss
7207 Sentencing
7207 Willfully Defined
7210 Willful Failure to Obey Summons
7212 Assault
7212 Bribery
7212 Constiutionality
7212 Indictment
7212 Interference p1
7212 Interference p2
7212 Interference p3
7212 Interference p4
7212 Jury Instructions
7212 Rescue of Seized, Levied Property p1
7212 Rescue of Seized, Levied Property p2
7212 Sentence p1
7212 Sentence p2
7212 Statute of Limitations
7212 Suppresion of Evidence
7215 Constitutionality
7215 Conviction
7215 Corporation
7215 Defenses
7215 Evidence
7215 Intent
7215 Speedy Trial
7216 Consent
7216 Preparer Defined
7216 Scope of Statute
7217 IRS Employees

 

Bank Records and Net Worth Increases 1 Page4

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[77-1 USTC ¶9165] United States of America , Plaintiff-Appellee, v. Edward Cook, Defendant-Appellant

(CA-5), U. S. Court of Appeals. 5th Circuit, No. 76-3299, Summary Calendar *, 546 F2d 82, 1/27/77, Affirming District Court, 75&-1 USTC ¶9134

[Code Secs. 7201 and 7203--result unchanged under the '76 Tax Reform Act]

Tax evasion: Appeal of conviction: Motion for new trial: Newly discovered evidence.--The Court of Appeals dismissed taxpayer's motion for a new trial since the taxpayer failed to demonstrate that the newly discovered evidence was not merely cumulative but material and such that a new trial would be likely to change the result by producing an acquittal. Therefore, the taxpayer's conviction for tax evasion was upheld.

Julius Lucius Echeles, Carolyn Jaffe, 35 E. Wacker Dr. , Chicago , Ill. 60601 , for appellant. John L. Briggs, United States Attorney, Jacksonville, Fla., Bernard S. Bailor, Scott P. Crampton, Assistant Attorney General, Gilbert E. Andrews, Rob ert E. Lindsay, Murray S. Horwitz, Department of Justice, Washington, D. C. 20530, for appellee.

Before COLEMAN, GOLDBERG and GEE, Circuit Judges.

PER CURIAM:

The appellant, Edward Cook, was convicted by a jury of income tax evasion for the years 1966 through 1970, in violation of 26 U. S. C. §7201. 1 Cook's motion for a new trial or for judgment of acquittal was denied after a hearing in November 1973, and he was sentenced on January 7, 1974. His conviction was affirmed on appeal. United States v. Cook, 505 F. 2d 659, cert. denied, 421 U. S. 1000, 95 S. Ct. 2397, 44 L. Ed. 2d 667 (1975). On March 5, 1975, appellant moved for reconsideration of the denial of his motion for a new trial. The court below denied the motion for new trial after a full evidentiary hearing, and Cook has filed this appeal. He argues that the discovery of new evidence mandates that a new trial be held. We affirm.

Appellant filed no tax return for the relevant years. The government sought to show at trial that Cook's substantial expenditures from 1966 through 1970, when viewed against the fact that prior to this period Cook was unemployed and earned no income, showed that appellant had unreported income during the period. Cook's defense was that prior to 1966 he had accumulated assets worth over $150,000, which constituted the source of his expenditures during the 1966-1970 period.

A defense witness, Howard Brodsky, testified that in 1964 he received power of attorney from Cook to remove the contents of the latter's safety deposit box in a local bank. Brodsky testified that he removed several diamonds and about $30,000 in cash from the box. Two bank employees testified at an April 1973 hearing on Cook's motion for new trial that a search of the bank's records prior to trial had failed to reveal a power of attorney or entry slip with Brodsky's name on it. Brodsky was subsequently indicted for perjury. Brodsky requested that another search be made. In September 1974, investigators discovered a power of attorney and an entry slip indicating that Brodsky had entered the box on February 12, 1964. The perjury indictment against Brodsky was dismissed. Cook moved for a new trial on the basis of this evidence.

The district court denied the motion, holding that the newly discovered evidence was merely cumulative and its introduction at trial could not likely have changed the result. This is correct. the critical element of Cook's defense was not that Brodsky entered the safe deposit box, but that he removed diamonds and $30,000 therefrom.

That Brodsky entered the safe deposit box was not controverted at trial. That Brodsky removed diamonds and $30,000 was an unsupported assertion the jury could and did disbelieve. The newly discovered evidence, even assuming its authenticity, 2 does not establish the truth of Brodsky's latter assertion but merely corroborates his former statement.

In order to compel the granting of a new trial because of newly discovered evidence, the movant must show that the evidence is not merely cumulative but material and such that a new trial would be likely to change the result by producing an acquittal. United States v. Spivey, 508 F. 2d 1061, 1063 (5th Cir. 1975); United States v. Jacquillon, 469 F. 2d 380, 388 (5th Cir. 1972), cert. denied, 410 U. S. 938, 93 S. Ct. 1400, 35 L. Ed. 2d 604 (1973); United States v. 41, Cases, More or Less, 420 F. 2d 1126 (5th Cir. 1970). The evidence Cook adduces is cumulative and thus fails to meet this threshold requirement. See United States v. Riley, 544 F. 2d 237 (5th Cir. 1976). We therefore need not consider whether Cook has satisfied a second requirement by showing that he demonstrated due diligence in seeking to discover the evidence before trial. United States v. Spivey, supra, 508 F. 2d at 1063; United States v. Jacquillon, supra, 469 F. 2d at 388.

The judgment of the district court is

AFFIRMED.

* Rule 18, 5 Cir.; see Isbell Enterprises, Inc. v. Citizens Casualty Co. of New York et al., 5 Cir. 1970, 431 F. 2d 409, Part I.

1 26 U. S. C. §7201 provides:

Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution.

2 The record reveals that a laboratory analysis performed on the power of attorney and entry slip suggested that the date of entry and safety deposit box number had been overwritten by a pen with a different ink than that used to affix the original numbers and date.

 

 

[75-1 USTC ¶9134] U. S. A. , Plaintiff-Appellee v. Edward Cook, Defendant-Appellant

(CA-5), U. S. Court of Appeals, 5th Circuit, No. 74-1164, 505 F2d 659, 12/20/74, Affirming unreported District Court decision

[Code Sec. 7201]

Tax evasion: Willful evasion: Sufficiency of evidence.--The trial court's record contained substantial, although conflicting, evidence from which the jury could conclude beyond a reasonable doubt that the testimony of an IRS agent, as to the taxpayer's net worth at the opening of the tax period in question, was accurate. Similarly, a reasonably mined jury could validly draw inferences from the government's circumstantial evidence of credit purchases accompanied by large and extensive cash dealings, far in excess of the taxpayer's apparent net worth at the opening of the tax period in question, and inconsistent statements by the taxpayer as to the source of his finances that, beyond a reasonable doubt, the taxpayer was living on taxable income received in the period in question upon which he willfully evaded taxation. from the government's circumstantial sufficient to establish affirmative evasion, the taxpayer's plea for reversal of his conviction, on the grounds that the government's evidence was insufficient to overcome his "cash hoard" defense and that the evidence failed to establish willful evasion, must fail.

[Code Secs. 7201 and 7203]

Tax evasion: Appeal of conviction: Allegations of reversible error.--Assignments of error raised for the first time on appeal connot be reviewed unless the plain error threshold is met. Consequently, the taxpayer's claim that it was plain error for the trial court to permit the prosecutor to argue that the taxpayer was "lying," and that he was "hiding" from both the I. R. S. and the jury, must fail. While it was improper for the prosecutor to present the argument in the manner that he did, to characterize the government's "hiding" comment as an allusion to the taxpayer's refusal to testify requires an inference which is too tenuous to support plain error reversal; moreover, whatever prejudicial effect the "lying" comment may have produced was substantially diminished both by the prosecutor's disclaimer and by the efforts of taxpayer's counsel to turn the improper argument against the government. Finally, it was not error for the trial court to advise the jury with a lesser-included offense instruction that the misdemeanor provisions of Code Sec. 7203, which involve a willful omission of failing to file a return, are included in the broader felony offense provisions of Code Sec. 7201, involving the willful commission of an attempt to evade or defeat the tax.

John L. Briggs, U. S. Attorney, Claude H. Tison, Asst. U. S. Attorney, Tampa, Fla., Scott P. Crampton, Asst. Attorney General, Meyer Rothwacks, John P. Burke, Murray S. Horwitz, Dept. of Justice, Washington, D. C. 20530, for plaintiff-appellee. Julius Lucius Echeles, Chicago , Ill. , for defendant-appellant.

Before COLEMAN, CLARK and RONEY, Circuit Judges.

[Opinion of the Court]

CLARK, Circuit Judge:

Edward Cook appeals from his jury conviction on five counts of willfully evading income taxes from 1966 through 1970 in violation of 26 U. S. C. §7201. Through the diligent efforts of new counsel in this court, he advances six grounds for reversal, the last four of which, since not properly presented below, must constitute plain error to be reviewable here. 1 First, he contends that the government's evidence was insufficient to overcome his "cash hoard" defense. Second, he argues that the evidence failed to establish willful evasion. His third, fourth and fifth grounds assign, individually and cumulatively, three instances of prosecutorial conduct: unsupported attempts to impeach key defense witnesses during cross examination, closing argument use of a court-excluded statement by defendant, and closing argument statements that the defendant "was lying" and failed to testify. His final plain error contention relates to a lesser-included-offense instruction. We affirm.

Following the expenditures method, the government sought to show that Cook, who was unemployed, had an income of approximately 13,000 dollars from nontaxable sources for the five years; had not filed returns for any of the years; yet, had spent approximately 150,000 dollars. See United States v. Penosi [72-1 USTC ¶9103], 452 F. 2d 217, 220 (5th Cir. 1971). Neither Cook's defense below nor the present appeal focuses on these matters. Rather his defense was that prior to January 1, 1966, he had accumulated cash and other assets of a value in excess of 150,000 dollars, which were the source of the funds spent. See e.g., United States v. Newman [72-2 USTC ¶9719], 468 F. 2d 791, 794 (5th Cir. 1972).

[Sufficiency of Evidence]

To address the sufficiency question, we must record the evidence presented at trial in some detail. The Government's proof established that Cook had not filed income tax returns for any of the years in question and that treasury agents had made an exhaustive search which failed to discover any assets held by defendant prior to January 1, 1966, other than two cars valued at 5,850 dollars. This conclusion was supported by evidence that Cook had been infrequently employed prior to 1966 and that, during the prosecution years, he had "financed" several purchases. It was stipulated that the defendant was totally unemployed and earned no income whatsoever from 1944-1948, 1951-1960 and 1964-1965, and that he received no gifts or bequests nor inheritance from his mother at her death in 1967. His former wife, Geraldine, whom he married in February, 1961; separated from in 1962; reunited with in 1965 and divorced in May 1966, testified, inter alia, that defendant did not have a job in 1961 when they were married and that she did not know if or when he got his first job after that. She had to work as a secretary for a short time during the marriage. She had no knowledge that defendant had a safety deposit box, or any jewelry, or a coin collection. In addition, she testified that not only had they borrowed money from the family when they were short of cash, but they had also financed the purchase of a 1965 Oldsmobile. F. B. I. Special Agent Guilfoile testified that he had known Cook's current wife, Joan, even before 1966, but had never known her to be gainfully employed. By Cook's own statement, his employment record prior to 1951 had been sporadic and insubstantial. In fact, his only sustained employment was from 1962-1964 when he received a salary of 250 dollars per week as an employee of a jewelry company. Also tending to negate the existence of pre-1966 assets was the evidence that Cook had to obtain credit for several purchases during the prosecution years. In 1967 he purchase a 59,500 dollar house and assumed both a first and second mortgage. He also financed part of the purchase price of a 12,566 dollar Donzi Boat and a new Oldsmobile automobile.

Other evidence established abundant facts about Cook's financial activities and resources and numerous inconsistencies in his personal representations about them. In August, 1969, for example, defendant told F. M. Beirne, a local police officer, that he was still under investigation by the Internal Revenue Service because of not filing an income tax return. Beirne further quoted Cook as saying his standard explanation for this was that his wife was wealthy and that since he had never held a job or earned 600 dollars annually, he was not required to file an income tax return. 2 The statement is in direct conflict with Cook's credit card and loan applications during the prosecution years in which he consistently represented himself to have an income of 18,000 or 20,000 dollars per year. The source of his income was variously shown as deriving from self-employed, semi-retired, or retired activity in stocks, bonds and investments, or the cosmetic business. Evidence of other business activity by the defendant during the prosecution years included Cook's ordering of locksmith's tools under the trade name Cook's Key and Hobby Shop and his representation in 1967 that he was in the perfume business or had something to do with a donut establishment.

Cook made substantial outlays of cash in the covered period. Included were the purchase of five cars, for which he paid out cash ranging in an amount from 2065 to 3700 dollars; a 6200 dollar initial payment on the Donzi Boat, and an 18,000 dollar cash payment for a lot. In at least two of the prosecution years, Cook's total cash payments (28,601.65 and 22,261.21 dollars) were more than double the payments for purchases he made by check.

Defendant's proof included no documentation of his pre-1966 ownership of assets. He did, however, produce three witnesses to support his claim that substantial asset ownership accounted for his spendings in the tax period. They were Howard Brodsky, a bondsman; Ronald Hanson, a business friend; and Richard Chapman, a self-employed dealer in jewels. Brodsky's contact with Cook was as a bail bondsman on an unrelated criminal charge. In his testimony to the jury the relationship was merely described as one requiring Cook to place collateral with Brodsky. Brodsky testified that in 1963 and 1964 Cook had safety deposit boxes containing a gold coin collection, diamonds (including a canary diamond appraised for more than 75,000 dollars), cash, and other assets which in total value exceeded 150,000 dollars. He further stated that he took possession of these items and in 1966 and 1967 redelivered their contents to Cook. Hanson testified he had known Cook in Chicago , that in December of 1965 he had borrowed 35,000 dollars in cash from Cook to establish a wig business, and that in about February or March of 1966, when the projected venture did not materialize, he returned these funds.

Cook also presented testimony from Richard Chapman to the effect that Chapman shared offices and a telephone with one Herman Gordon, who was a wholesale diamond merchant. Chapman testified that in the summer of 1968 he witnessed a transaction in which Gordon paid Cook 85,000 dollars in cash for a large canary diamond. Inferentially, this diamond was similar to a diamond Brodsky testified he observed to be in Cook's safety deposit box in 1963.

[Proof Required]

It is essential to affirmance to find that the jury was furnished adequate proof of the defendant's net worth at the opening of the tax period in question. United States v. Penosi, supra; Marcus v. United States [70-1 USTC ¶9213], 422 F. 2d 752, 755 (5th Cir. 1970). In this case, the inferences to be drawn from the evidence of little or no income prior to 1966 and credit purchases after January 1, 1966 together with the special agent's testimony that Cook's net worth on January 1, 1966, the beginning of the prosecution years, was less than 6,000 dollars were opposed by the testimony of Brodsky, Hanson and Chapman. The fact that a conflict existed, however, is immaterial, because viewed in the light most favorable to the government, Glasser v. United States, 315 U. S. 60, 62 S. Ct. 457, 86 L. Ed. 680 (1942), the record contained substantial evidence from which the jury could conclude beyond a reasonable doubt that the agent's testimony was accurate.

Similarly a reasonably minded jury could validly draw inferences from the government's circumstantial evidence of credit purchases accompanied by large and extensive dealings in cash, and inconsistent statements as to the sources of his finances that, beyond a reasonable doubt, Cook was living on taxable income received in the subject period upon which he willfully evaded taxation rather than on a cash hoard accumulated previously. United States v. Nazien, 504 F. 2d 394 (5th Cir. 1974); United States v. Warner, 441 F. 2d 821, 830 (5th Cir. 1971); United States v. McGlamory, 441 F. 2d 130, 135 (5th Cir. 1971). These permissible inferences would be sufficient to establish affirmative evasion. Spies v. United States [43-1 USTC ¶9243], 317 U. S. 492, 499, 63 S. Ct. 364, 87 L. Ed. 418 (1943). See also United States v. Newman [72-2 USTC ¶9719], 468 F. 2d 791, 794 (5th Cir. 1972).

[Prosecutorial Conduct]

Cook's remaining assignments of error are raised for the first time in this court. They were not even brought before the trial court in his post trial motions. To permit review, the plain error threshold must be crossed. See, e.g., United States v. Smith, 502 F. 2d 512, 519 (5th Cir. 1974). Acknowledging this to be the standard, Cook urges it was plain error for the prosecution to imply, in its cross examination of defense witnesses Howard Brodsky and Richard Chapman, that it possessed impeaching information without thereafter offering supporting evidence when the questions were answered adversely. 3 Cf. United States v. Constant, 501 F. 2d 1284 (5th Cir. 1974). Since failure to introduce rebuttal on these points is more likely to have aided than harmed defendant, and since his counsel capitalized on the lack of such rebuttal in closing arguments, we refuse to try the issue for the first time in this court under the plain error rule.

Cook's criticisms of the closing arguments urge that the prosecutor impermissibly utilized a statement which had been made by Cook to an IRS agent, but which had been ruled inadmissible by the court. Assuming this was error at all, the problem for treating it as plain error is that the very same statement had been admitted in evidence through Officer Beirne. 4 If objection had been timely made and the court's ruling had been made retroactively applicable to the IRS agent's testimony, the problem could have been clarified without prejudice. This is precisely the kind of matter that cannot qualify as plain error.

Cook further contends that the court committed plain error when it allowed the prosecutor to argue:

"Today I want to tell you, this case is not difficult to decide. It is an extremely large amount of evidence coming in here which shows that the defendant, No. 1 spent the money, made many admissions as to taxable income. Only to the Internal Revenue Service and to you does he need hide because he has a technical income, because he had a cash hoard. It is evidence on the record that such a cash hoard did not exist. He was lying and purposely and willfully evading the income tax." (Emphasis is added)

The questions to and answers by the witness Chapman were:

Q. Are you telling me as an expert in the diamond business that all diamond merchants deal exclusively in cash?

A. I didn't say . . . exclusively . . . I say primarily.

* * *

Q. But you are not prepared to state whether this is the custom throughout the diamond trade?

A. I would say that it is . . . on a wholesale level between diamond brokers.

The government asserts that the "hide" allusion in this statement was intended to point out the contrast between Cook's admissions on loans and credit applications of income around 20,000 dollars a year and his later assertion that he didn't earn 600 dollars a year. They also urge that the comment was meant to question the existence of defendant's asserted cash hoard. The use of the phrase "he was lying", while confessedly ill advised and inappropriate, is said to have been based on a permissible belief inferred from the evidence. See, e.g., United States v. Greenberg, 268 F. 2d 120, 123-124 (2nd Cir. 1959).

In the abstract, the argument is clearly objectionable.

. . . [P]rosecutors should exercise utmost restraing and caution in fashioning arguments which may tend to support the suggestion of a comment on the failure of a defendant to testify. Additionally, expressions of personal opinion as to the credibility of witnesses for the prosecution should be avoided. "It is as much his [the prosecutor] duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one".

United States v. Rhoden, 453 F. 2d 598, 600 (5th Cir. 1972) quoting Berger v. United States , 295 U. S. 78, 88, 55 S. Ct. 629, 79 L. Ed. 1314, 1321 (1935).

However, to establish the "hide" comment as an allusion to the defendant's refusal to testify requires an inference which is altogether too tenuous to support plain error reversal. We note that the opening words of this sentence couple the revenue service with the trial court jury in speaking of those from whom Cook need "hide." Since the revenue service performs an extra judicial function of investigation, its mention tends to disassociate the tenor of the remarks from the hiding of courtroom testimony. It is entirely plausible to construe the thought intended to be conveyed as a challenge to the jury to use Cook's own prior representations that he had income as a basis for rejecting the defense assertion that his large spendings came from a prior accumulation and that he had no income over 600 dollars for any of the years. This is what the trial was mainly about. The failure of defense counsel to object helps to confirm that the argument was sufficiently ambiguous to deny it classification as an error which plainly deprived defendant of any substantial right.

Whatever prejudicial effect might have obtained from the "lying" comment, was diminished both by an express disclaimer by the prosecution and by defense counsel's use of the prosecutor's argumentary indiscretions in an attempt to turn the "lying" remark against the prosecution. 5 At the beginning of this closing argument, the prosecutor stated:

I want my discussion to be based on the evidence you have heard in this court-room. As I said at the outset, what lawyers say is not evidence, no matter how important we think it is, it is not evidence and it is not properly considered by you in arriving at the verdict. It is to aid you. If your recollection of the evidence differs from what I said, follow your recollection. You are the people who are to evaluate the evidence.

While the comment was altogether improper and an objection would surely have brought corrective action, we must weigh the degree to which the prosecutor's argument may have affected a substantial right belonging to the defendant. We conclude that the prejudicial effect was slight, while the evidence of guilt was substantial. See United States v. Rodriques, 503 F. 2d 1370 (5th Cir. 1974); United States v. Rhoden, 453 F. 2d 598 (5th Cir. 1972). "Without putting our imprimature on every remark made by the prosecutor, we perceive no plain error which should be noticed in the absence of objection. . . ." United States v. Jenkins, 442 F. 2d 429, 435 (5th Cir. 1971); United States v. Scaglione, 446 F. 2d 182, 188 (5th Cir. 1971).

[July Instruction]

Finally, appellant argues that misdemeanors under Section 7203 (failure to file) are not lesser included crimes under Section 7201 (willful evasion) and, thus, that the giving of a lesser-included-crime instruction was erroneous. The failure to bring the error complained of here to the attention of the trial court would bar its assignment as error under Fed. R. Crim. P. 30, unless it fell under Rule 52(b). But the instruction here involved was not error at all. The misdemeanor provisions of Section 7203 ininvolve a willful omission of failing to file a return. The felony provisions of Section 7201 includes the broader offense of willful commission of an attempt to evade or defeat the tax. Sansone v. United States [65-1 USTC ¶9307], 380 U. S. 343, 351, 85 S. Ct. 1004, 1010, 13 L. Ed. 2d 882 (1965); Spies v. United States [43-1 USTC ¶9243], 317 U. S. 492, 63 S. Ct. 364, 87 L. Ed. 418 (1943). See , United States v. Bishop [73-1 USTC ¶9459], 412 U. S. 346, 93 S. Ct. 2008, 36 L. Ed. 2d 941 (1973). Cf. United States v. Bowness, 504 F. 2d 391 (5th Cir. 1974).

We have carefully considered appellant's auxiliary arguments and find them equally without merit.

Affirmed.

1 Fed. R. Crim. P. 52(b) provides: "Plain errors or defects affecting substantial rights may be noticed although they were not brought to the attention of the court." See C. Wright, Federal Practice and Procedure §856.

2 An agent of the Internal Revenue Service testified that Cook made essentially the same statement to him. Subsequent to the admission of this evidence, the Court ruled that the failure to give Cook admin istratively required warnings, Int. Rev. Manual §9384.2, rendered this testimony excludable. The record reveals that at this point counsel for Cook made the deliberate strategic choice to leave this testimony in the record rather than having it highlighted by a specific direction from the Judge that the jury should disregard it.

3 The witness Brodsky answered these questions in the negative:

"Q. Isn't it a fact, sir, you told them (F. B. I. Agents) those coins were submitted to you by Martin Katz and were owned by Martin Katz?

* * *

Q. Isn't it a fact you also later told them you returned the gold coins not to Clarence, but John Cook?

Q. Isn't it a fact you told the F. B. I. agent it was returned to Clarence Cook?

* * *

Q. Didn't you tell the F. B. I. that the 27 carat diamond was owned by Martin Katz?

4 See note 2, supra, and accompanying text.

5 Defense counsel argued that it constituted "unfair tactics" to "try to create prejudice in the minds of the jury by inflection, innuendos, insinuation" and that the prosecution was attempting to "inflame people" by "twist[ing] the truth". Then he came to the point:

Now, I resent it. I personally resent it calling my client a liar.

Now he is an American citizen and he is entitled to every kind of a courtesy; every kind of a right and privilege that you or I should be entitled to in this Court of Law. Why is he a liar? Because he tried to prove in a particular time, in 1963, he had a valuable diamond and he had a gold coin collection. And you call him a liar? Well, let us see. Now, who is lying here?

I don't call anybody a liar, but I say who is making the mistake? Who is making the false innuendo?

 

 

[56-2 USTC ¶9956] United States of America , Plaintiff-Respondent v. Raymond A. O'Connor, Defendant-Appellant

(CA-2), U. S. Court of Appeals, 2nd Circuit, Docket No. 23763, 237 F2d 466, 10/1/56, Reversing and new trial ordered of an unreported District Court decision

[1939 Code Sec. 145(b)--substantially unchanged in 1954 Code Sec. 7201]

Crimes: Willful failure to pay tax: Instructions to jury.--The conviction of taxpayer, a certified public accountant, on an indictment charging him with willfully attempting to evade and defeat his income taxes by filing returns understating the amount of his taxable income, was not sustained. With reference to alleged errors raised by taxpayer, the court held as follows: (1) the trial court's charge to the jury was insufficient where it failed to include a summary of the net worth method, the assumptions on which it rests, and the inferences available both for and against the accused; (2) the summary net worth charts used by the government and introduced in evidence were reasonably accurate; (3) the trial court did not err in excluding certain documentary evidence offered by taxpayer where the documents were alleged copies or summaries of originals which had been lost or destroyed by taxpayer or others; and (4) taxpayer improperly contended that the indictment should have been dismissed because it was based entirely on hearsay evidence. The case was remanded for a new trial.

[1939 Code Sec. 3631--similar in 1954 Code Sec. 7605(b)]

Examination of books and witnesses: Time and place: Failure to object to examination as waiver.--The court held taxpayer waived any objection by consenting to a re-examination of his books, even assuming the evidence obtained was inadmissible in a tax prosecution because of the Commissioner's failur