Monday, August 30, 2010

Judge sends to prison four involved in aiding tax evasion

A federal judge sentenced to prison today four men found guilty of helping dozens of clients, including actor Wesley Snipes, evade over $1 billion in taxes. All four of the company’s promoters were found guilty of both conspiracy to defraud the government and mail fraud.

One of the four, Eddie Ray Kahn, was sentenced to 20 years in prison on top of the 10-year sentence he is currently serving following his conviction in the 2008 Snipes case. Prosecutors said Kahn founded and ran a group called the American Rights Litigators/Guiding Light of God Ministries that worked to sell “tax defiance schemes” and misrepresented the legality of its efforts.

The Washington Post article on today’s sentencing quotes John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division, who said that “those who promote illegal tax defiance face prosecution and lengthy prison terms.”