I have posted before on the continuing saga of James Simon, "Certified Public Accountant, a professor of accounting, and an entrepreneur," who was convicted of "filing false income tax returns, failing to file reports of foreign bank accounts, mail fraud and financial aid fraud." Yesterday, the Seventh Circuit rejected his appeal, thus affirming his convictions. United States v. Simon, ___ F.3d ___, 2013 U.S. App. LEXIS 16988 (7th Cir. 2013), here, [enhanced version available to lexis.com subscribers]. Simon was always the atypical case because of the "other crimes" involved and the egregious fact pattern. So I am not sure what lessons it teaches except as a variation of the old saying, "Bulls make money, bears make money, pigs get slaughtered."You get the flavor from the Seventh Circuit's summary:
For tax years 2003 through 2006, the Simon family received approximately $1.8 million from JAS Partners, Elekta, JS Elekta, Ichua and William R. Simon Farms, Inc., most of this recorded as loans in Simon's personal financial records. Simon and his family spent approximately $1.7 million during this same period of time. Yet Simon paid just $328 in income taxes for 2005, and claimed refunds for the other three years, at the same time pleading poverty to financial aid programs in order to gain need-based scholarships for his children at private schools.
View Jack Townsend's opinion in its entirety on the Federal Tax Crimes blog site.
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