Posted on 01/06/2004 5:32:10 AM PST by sinkspur
FORT WORTH - Anti-tax protesters from across the country braved a chilly reception inside and outside the federal courthouse Monday when Bedford businessman Richard Simkanin went on trial for the second time on charges of violating U.S. tax laws.
U.S. District Judge John McBryde closed the courtroom during jury selection. About 100 of Simkanin's supporters were ordered to leave the fourth floor of the courthouse while they waited for trial testimony to begin.
Simkanin, the 59-year-old owner of a small Bedford plastics manufacturing company, is accused of failing to withhold and pay $175,000 in taxes on employee wages and of filing 15 fraudulent refund claims for about $235,000.
Prosecutors also accuse him of failing to file individual tax returns.
His refusal to pay the federal taxes -- and in general to reject the state and federal governments' authority over him -- has made Simkanin a hero and a martyr in what is known nationally as the "tax honesty movement."
"We just want the people of Fort Worth to know we are supporting this man," said Lewis Cosby of Kerrville, who stood in the cold outside the courthouse with a banner that read "Stop Judicial Tyranny."
This is the second time Simkanin has gone on trial. In November, McBryde declared a mistrial after jurors deliberated for eight hours before saying that they were deadlocked and could not reach a verdict.
The first trial came only after a plea agreement Simkanin signed was thrown out because of a technical error. The initial agreement misstated the maximum possible sentence he could receive as three years instead of five.
Since then, tax protesters have rallied around Simkanin's cause, calling him a patriot. They even bought a billboard a few blocks from the federal courthouse, asking McBryde to free Simkanin in the name of the Constitution.
On Monday, prosecutors put 11 witnesses on the stand -- including Simkanin's sister-in-law Dianne Clemonds -- to try to show that Simkanin knew what he was doing when he stopped withholding and paying taxes on employee wages.
Clemonds said she worked at Simkanin's company, Arrow Custom Plastics, for 11 years, including as an accounts payable clerk. Eventually, she became aware that Simkanin had decided not to pay the income taxes.
She testified that Simkanin made her "president" and put her name on the bank accounts and credit card bills because he didn't want to sign any legal documents. Simkanin "didn't want to be part of the system," she said.
Clemonds testified that she resigned because she didn't want the responsibility and that she "wasn't going to go to jail for him."
Accountants James Kelly and Fred Taylor said that they repeatedly warned Simkanin that his approach to filing his taxes would get him into trouble. Eventually, they said, they refused to prepare his business and personal tax returns.
"He did not believe the Internal Revenue Code applied to him," Taylor said. "I told him it did and that he would get into a lot of trouble."
Prosecutors also put Internal Revenue Service agents on the stand to bolster their argument that Simkanin intentionally broke the law. Under federal tax laws, ignorance of tax codes can be used as a legal defense.
McBryde kept a tight rein on the questions asked by the prosecutors and especially on those posed by defense attorney Arch McColl of Dallas.
McBryde has compared the tax honesty movement to a cult. He also ordered that Simkanin be kept in jail after an informant told him that Simkanin had threatened to kill federal judges.
When McColl tried to query witnesses on legal definitions of employee and wages, McBryde cut him off. When McColl asked whether Social Security taxes were mandatory, McBryde sternly said: "We're not going to play this game."
Once, when Simkanin's supporters laughed at the treatment McColl was receiving, McBryde sent the jury out of the room and then told the crowd that he would clear the audience if there was another "outburst."
"We're in a court of law, but we can't talk about the law," said Mike Owens of Denver during a courtroom break.
Vicki Ariatti, also of Colorado, said she was disgusted by the proceedings.
"This is his life, and he can't defend himself with the code book and that is where the law is -- in the code book," Ariatti said.
The trial will continue at 8:30 a.m. today in McBryde's courtroom in the federal courthouse at 10th and Lamar streets.
But, these goofy tax protesters never seem to learn.
Rank | Location | Receipts | Donors/Avg | Freepers/Avg | Monthlies | |||
---|---|---|---|---|---|---|---|---|
8 | New Jersey | 495.00 |
10 |
49.50 |
347 |
1.43 |
170.00 |
8 |
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very CHILLING words, whatever happened to "We the people"???? Obviously this statement came from one that believes that authority comes first from the Fed, then to the states etc.. in theory, our government is to submit to the authority of the governed
IOW, he KNEW he was breaking the law, and was exposing his workers to liability.
remember the phrase "innocent untill proven guilty in a court of law"?
The guy already pled guilty; his deal was overturned on a technicality.
He's guilty.
This line makes it look like his employees didn't have anything taken from their checks. If he would have withheld the money, then spent it, then I would really have a problem with his actions.
She testified that Simkanin made her "president" and put her name on the bank accounts
But, then we get this line, and it certainly seems like he was setting up someone else to take the fall.
I'm not sure we're getting an accurate picture of what is going on from this article.
McColl is not getting away with putting the law on trial, this time.
Simkanin is going down.
In your opinion, is there any law which should be put on trial?
Questions that need to be answered. If the "employees" actually sub-contractors or contrators, thus no need to withhold taxes. That would put the tax accountablility on the individual "employee". Given that he did not withhold the money, I would think that is the way that it was being worked. At the end of the year what form did they get, W-2 or 1099? What about the responsibility of the individual "employees" for the taxes not being paid? If they filed their taxes and they have not had anything withheld, they are responsible for the bill.
What a shame, if true. Every law should always be on trial. Just laws will be upheld by juries. With any luck, insane ones will not.
The Fed's will get their pound of flesh, because the little guy cannot overcome the awesome resources of the state. That's how the crooks (IRS) have been able to get away with it for so long. As soon as someone protests or points out flaws, he is crushed by the state.
That doesn't fly with the Constution I swore to defend.
I wonder if it's too late to try to make fair taxation a campaign issue for Nov.
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