Stylish Celebrity Escapism
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Apr 25
'08
Wesley Snipes gets maximum penalty, three years in prison, for tax evasion


Wesley Snipes has been sentenced to three years in prison, for three misdemeanors in not filing his taxes. While his lawyer claims he was singled out because of his celebrity, reading this report on his behavior makes me think his aggressive attitude towards government employees is probably what earned him the maximum penalty.

The decision by US District Court judge William Terrell Hodges came two months after a jury convicted Snipes on three counts of willfully failing to file federal tax returns from 1999 to 2001.

The court heard yesterday that Snipes dodged $15 million (£7.5 million) in tax through a campaign in which he concealed millions offshore, falsely applied for tax refunds and bombarded the Internal Revenue Service with frivolous correspondence that threatened government employees, railed about extortion and used twisted legal interpretations to back his claim that taxation was unlawful.

“For nearly a decade, Snipes has engaged in a campaign of criminal tax conduct combining brazen defiance with insidious concealment,” the prosecuting attorney, Robert O’Neill, told the court in a sentencing memorandum. “In the defendant Wesley Snipes, the court is presented with a wealthy, famous and inveterate tax scofflaw. If ever a tax offender was deserving of being held accountable to the maximum extent for his criminal wrongdoing, Snipes is that defendant.”

Times Online

Wesley won’t go to prison immediately, but will surrender closer to his New Jersey home at a later date. This will allow him to be closer to his five children, aged between 1 and 19 years old.

The Times also says that Wesley attempted to give the judge three envelopes, containing cheques totalling $5million, but the judge could not accept them. The IRS did collect the cheques during a recess. I’m not sure if they were trying to prove that Wesley was going to pay debts, or they just weren’t sure who to give the money to.

Wesley’s tax advisors are also in jail, as it seems that he was given bad advice.

Wesley became a tax denier in 1999, where you are part of a movement that believes tax laws are unjust and that you shouldn’t have to pay them. If you can prove that you are a sincere follower of the movement you can avoid criminal consequences, but Wesley’s offshore bank accounts made the court consider him a fraud, not just someone who doesn’t believe in taxes.

Picture note by Celebitchy: Wesley Snipes is shown outside of court on February 1 when he received good news - he was acquitted of tax fraud but was convicted of failure to file taxes. He’s probably not that happy at this point. Thanks to Splash News for these photos.

Posted in Court Appearances, Prison, Wesley Snipes

Written by Helen         6 Comments »
Feb 2
'08
Wesley Snipes acquitted of tax fraud felonies; convicted on misdemeanors

02snipes01_600.jpg

Actor Wesley Snipes was acquitted on felony tax fraud charges but was convicted on three counts of misdemeanors in failing to file his taxes. Snipes’ defense rested without presenting any evidence, claiming the government had failed to prove their case. Most seemed to think that move doomed Snipes, but he was acquitted of the most serious charges. He still could face up to three years in prison on the misdemeanors.

Snipes is part of the tax denier movement, who believe that tax laws are unjust and that they shouldn’t have to pay them.

Tax deniers assert variously that the tax laws are valid but do not apply to them, that no law makes anyone liable for taxes and that the government tricks people into paying. Promoters of tax denial claim that people can legally stop paying income taxes by executing certain documents, or by not signing others, like tax returns. Courts have rejected all these arguments.

[From the New York Times]

The Supreme Court has said that tax deniers are not guilty of fraud if they can prove that they “sincerely believe” that they weren’t required to pay the taxes. They still have to pay back the taxes and fines, but they can escape criminal consequences.

Snipes became a tax denier in 1999, when he found out he’d have to pay $2 million in taxes. Which is what happens when you make a lot of money. It’s the downside of being rich. Though Snipes was acquitted of all his serious charges, his two co-defendants were both convicted on the fraud and conspiracy charges. Defendant Eddie Ray Kahn is a promoter of tax denial and has previously served time on tax convictions. Douglas Rosile is a former accountant. Both the defense and prosecution say that the fact that Snipes was let off while Rosile and Kahn were convicted shows that the jury agreed that the co-defendants were the criminals and Snipes was the victim who bought into their ideology.

wesley_snipes.jpg

Posted in Money, Wesley Snipes

Written by JayBird         See post for comments
Dec 8
'06
Wesley Snipes finally nabbed by the feds for tax evasion


Wesley Snipes was arrested at the airport after coming home from filming in Namibia. He fell prey to a tax evasion scheme that claims that you can put all your earnings in a bogus “Constitutional Trust” to avoid tax liability. He was cited way back in 2002 for non-payment of taxes when he filed an amended return claiming zero income and asking for $7.4 million refund. He never learned his lesson and continued pulling that same stupid stunt.

Now he’s wanted for $12 million in taxes and is in federal custody:

TMZ has learned Wesley Snipes has been arrested and taken into custody by federal authorities.

The actor was arrested Friday morning after arriving at Orlando International Airport. Snipes said he was a scapegoat and unfairly targeted by prosecutors in connection with a federal tax fraud investigation.

Snipes had been shooting a movie in Namibia.

The “White Men Can’t Jump” star is accused of failing to pay nearly $12 million in taxes. Officials allege that Snipes fraudulently claimed refunds in 1996 and 1997, and then failed to file returns between 1999 and 2006.

In related celebrity tax evasion news, “Survivor” winner Richard Hatch was in court to appeal his conviction on tax evasion after he never paid taxes on the $1 million prize from the reality show. He claims producers told him they would take care of the taxes on his winnings after he busted them sneaking food to other participants in the show. He is currently in jail on a four year sentence.

Posted in Arrests, Wesley Snipes

Written by Celebitchy         2 Comments »
Oct 17
'06
Wesley Snipes is on the lam!


Holy crap, Wesley Snipes owes 12 million in back taxes to the US Government, and he’s on the lam. It’s just like one of his movies, and if I could remember any of them to reference I would.

Wesley Snipes is officially a fugitive of justice. According to the US Attorneys office, a warrant was issued last week after the feds filed charges that the actor defrauded the Internal Revenue Service of millions of dollars.

The “White Men Can’t Jump” star is accused of failing to pay nearly $12 million in taxes. Officials allege that Snipes fraudulently claimed refunds in 1996 and 1997, and then failed to file returns between 1999 and 2006.

According to the eight count indictment obtained by TMZ, Snipes and two other defendants, Eddie Ray Kahn and Douglas Rosile, are accused of attempting “through deceit, craft, trickery, and dishonest means to make it appear as if Snipes had no liability for federal income taxes, when in fact defendant Snipes had such liability.” Each count carries a maximum prison sentence of five years.

The indictment claims Kahn ran a enterprise promoting fraudulent tax schemes. Rosile was a CPA who allegedly prepared fraudulent tax returns for Kahn’s business. According to the charges, Snipes used the services of Kahn and Rosile to defraud the IRS.

I remember reading an article about a woman, Lynne Meredith, who believes that taxes are voluntary and that people can get out of paying taxes by putting their money into some kind of bogus “constitutional trust” tax shelter. She made a mint selling her anti-tax literature and seminars, was eventually convicted of fraud and tax evasion, and sentenced to ten years in federal prison.

It sounds like Snipes got involved in a similar tax shelter snake-oil scam, but he was pretty stupid not to learn his lesson the first time. Snipes was cited for non-payment of taxes back in 2002 when he filed an amended return listing zero income and claiming a $7.4 million refund.

He didn’t realize that phony tax shelters are illegal in the four year interim and it looks like he’ll be going to jail.

Curiously, Snipes was busted last year for trying to use a fake South African passport.

Posted in Lawsuits, Wesley Snipes

Written by Celebitchy         4 Comments »
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