Simkanin guilty of 29 counts of tax violations

Fort Worth Star-Telegram ^ | 1/8/2004 | Max Baker

[sinkspur]

FORT WORTH - After deliberating for more than 13 hours over two days, a federal jury Wednesday convicted Bedford businessman and tax protester Richard Simkanin on 29 counts of violating U.S. income tax laws.

The jury of six men and six women delivered its verdict shortly after 8 p.m. They remained deadlocked on two counts within the indictment, leading U.S. District Judge John McBryde to declare a mistrial on those charges.

Simkanin stood silently with his hands behind his back, showing no emotion, as a court clerk read the 29 guilty verdicts. Some supporters in the courtroom dabbed their eyes; others glared at the judge.

Simkanin, 59, is scheduled to be sentenced April 30, Assistant U.S. Attorney David Jarvis said. He can get up to five years on each of the 25 felony counts and up to a year on each of the four misdemeanor charges.

"Justice was served, and we're pleased that the jury understood that no one is above the law," Jarvis said.

Arch McColl, the Dallas lawyer representing Simkanin, said his client was denied a fair trial because McBryde did not allow him to present key evidence on whether Social Security, Medicare and income taxes are voluntary.

McColl said he expects to win on appeal, but he added that it is time for Americans to pay attention to what happened in court.

"I'm terribly disappointed," McColl said. "It was not a fair trial in accordance with the Sixth Amendment of the Constitution that includes the fundamental right to present evidence on your own behalf."

Robert Schulz, founder of We the People Foundation for Constitutional Education, a group that questions the validity of the nation's tax laws, told Simkanin's supporters that the defendant was prepared for the worst.

"His spirits are fine. His faith is strong," Schulz said.

This is the second time Simkanin has gone on trial. In November, McBryde declared a mistrial when jurors who deliberated for eight hours said that they were deadlocked and could not reach a unanimous verdict.

Simkanin is almost considered to be a political prisoner by groups that question the validity of the nation's tax laws. They contend that most Americans are not required to pay income taxes.

They are particularly hostile toward the Internal Revenue Service, an agency that, they say, is not an official government entity.

Simkanin's supporters came from around the country. They held a vigil at the courthouse, at one time praying in the hallway. They often gave him a thumbs-up gesture as he entered the courtroom. Once, Simkanin got a standing ovation.

During the trial, Simkanin testified that he didn't withhold employees' taxes for Medicare and Social Security benefits because his research did not produce a law showing that participation in the programs was mandatory.

But Simkanin backed away from some of his anti-government comments, saying they were a mistake. He once wrote to the U.S. Treasury secretary saying that he had repatriated himself from the United States to the "Republic of Texas."

When McColl tried to query witnesses on legal definitions of "employee" and "wages," McBryde cut him off. The judge told jurors they could not question the constitutionality of the tax code.

Prosecutors put 11 witnesses on the stand to show that Simkanin knew what he was doing when he stopped withholding and paying taxes. Under federal tax laws, ignorance of tax codes can be used as a legal defense.

Jurors sent out seven notes during their 11 hours of deliberations Wednesday.

They asked for legal definitions and whether they had to review evidence on who does have to pay taxes.

McColl said his client's company, Arrow Custom Plastics, is in deep financial trouble because of his fights with the government. Simkanin has been in jail since June.

Simkanin was convicted on 10 felony counts of failing to withhold about $139,000 in taxes from employees' wages and 15 felony counts of filing false tax refund claims for about $235,000.

He also was found guilty of four misdemeanor counts of not filing individual income tax returns from 1998 to 2001. Simkanin had an estimated gross income of about $410,000 during those years, according to the indictment.

Dottie Harrison, a Simkanin supporter from Houston, said his allies will continue to fight.

"I'm in shock, but the determined energy everyone feels to overturn this injustice will be a catalyst that will expose the entire IRS fraud," she said.

[ancient_geezer]

then why couldn't the IRS present even 1/10th of this

They have repeatedly in prior case law, which is the point of the court in not allowing the same multiply failed arguments(frivolous is the term applied) into the jury trial stage.

The idea is to keep the facts relavent to the case in determining guilt or innocence as regards violation of the specific statutes in the complaint.

Where the statute has been previously tested in the courts and has withstood examination, there is no basis on which to enter or put the law on trial again for every defendant that wants to distract from what remains to be the central issues of the case before the jury; The specific guilt or innocence of the defendant as the facts are purviewed in light of the statutes.

[Hon]

Tax protester trial begins

By Max B. Baker

Star-Telegram Staff Writer

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.

http://www.dfw.com/mld/startelegram/news/local/7643261.htm

[Lurking Libertarian]

If in less than 1 day, Ancient_Geezer could find this caselaw and present it in this forum, then why couldn't the IRS present even 1/10th of this?

The IRS presented all of this to the judge. The defense wanted to raise these issues in front of the jury, which is not the way it's done.

[spacewarp]

The IRS agents in the first trial, and it was attempted in the second, were asked to produce the tax code that allowed for witholding. You were able to find it rather quickly. Instead of responding, they just declared they weren't going to answer the question. In the second trial, they were not even given the chance to declare their refusal to explain because the judge stomped on the defense attorney.

I do not know, or rather did not know about the $235,000. I agree that is clearly a problem. And quite frankly, if the government had presented its case above board and openly and honestly, I would have absolutely no issue with it. But the fact is, they didn't. They took the tack that they're better than the rest of us. If I took the stand and did what they did, I'd be in jail. I am NOT one of those who hates our country, as was so elegantly put in one of the prior posts. I love our country, and am trying to work for a better future. One where we don't have tyrants running our courts and tyrants running federal agencies that dictate to us what we will do and haughtily sneer when we ask them to explain where they derived the power to ask us to do it.

Again, if the prosecution had performed above board, I certainly would have been fine with a person, who knowingly broke the law, being prosecuted and thrown in jail. But this behind the scenes stuff, on such an important issue just reeks of tyranny. And if you don't worry, then you're in trouble. Eventually, they will turn worse and worse if they're allowed to get away with junk like this. Look at the 9th Circuit. They were allowed for so long to do stupid things that smacked of tyranny, and now, we have a kangaroo court out there. It starts out with one act and then another and another. And this one is just a perfect instance of the prosecutor and the judge and the IRS collaborating to ensure the status quo was not disturbed.

I hope you can see my point that tyranny cannot ever be defended, even if the concept they are arguing is correct, their methods were wrong.

[Hon]

You and others here seem very eager to slop over into purple prose about tyranny. Many criminals blame the system when they are caught and shout about tyranny. That doesn't make it so.

There is no tyranny in enforcing laws that were written and enacted by our elected representatives and upheld as Constitutional by the Supreme Court.

It is just the opposite. It is a victory of the rule of law as opposed to the rule of men.

Simkanin and those who back him and support him think they can overturn our laws with their outrageous lies and bogus propaganda and their preposterous grandstanding before juries.

I hope that that will never be the case and that people like them will never succeed. If you like our system of government and the rule of law, you should hope that too.

[Paul C. Jesup]

Another one bites the dust.

One more martyr for the cause is more like it.

[Poohbah]

The IRS agents in the first trial, and it was attempted in the second, were asked to produce the tax code that allowed for witholding. You were able to find it rather quickly. Instead of responding, they just declared they weren't going to answer the question.

And they were upheld, because the issue of what the law says has already been litigated multiple times.

In the second trial, they were not even given the chance to declare their refusal to explain because the judge stomped on the defense attorney.

Do you think that the course of justice would be served if the defense in a murder trial were allowed to demand, repeatedly, at every single opportunity, that the cops cite the exact statute prohibiting murder?

That isn't the way the court system works.

[Hon]

One more martyr for the cause is more like it.

"In an order outlining his reasons for keeping Mr. Simkanin in jail pending his new trial, Judge McBryde referred to the defendant and others who share his views on tax laws as "cult-like.""

[patriot_wes]

Only when the defendent's right to fair and impartial due process is corrupted does the IRS win these cases. All Americans are losers in this one. You can check out the proceedings yourself here..... http://www.givemeliberty.org/rtplawsuit/Update04-Jan-06.htm

[patriot_wes]

Let me elaborate


The jury verdict in the Simkanin case is certainly not a victory for the citizens of this republic but is evidence of the power of a police state. As is seen in the transcripts of this case, the ability of the prosecution to triumph only occurs when the constitutional protections of the citizens rights are abused by the court in collusion with dishonest prosecutors. To deny access to an informed jury, to prevent presentation of evidence contrary to the claims of the accuser, the failure to state a specific statute which has been broken in accordance with lawful judicial procedure is beneath the dignity of a free people in any court in America. And in this case “victory” was only achieved by the “state” with the help of a judge who had already decided the victim was guilty in spite of the facts of the case. No, the people didn’t win in Fort Worth.

This blatant attack on liberty however was not lost on the thousands of witnesses across America who supported Mr. Simkanin and whose resolve is now strengthened to pursue the removal through whatever legal steps are necessary of this purchased and partial jurist. And to continue to expose in fair and impartial venues the lies of the IRS.

For Americans who “want to know” the transcript material is here ...... http://www.givemeliberty.org/rtplawsuit/Update04-Jan-06.htm

[sinkspur]

You can check out the proceedings yourself here.....

At "We the People"?

Note this little tidbit:

The balance of the afternoon followed similarly to the testimony cited above, with the government attempting to paint Simkanin as a criminal because he cashed checks in excess of $10,000 (while running a $5,000,000 a year business), because he changed the corporate signature card at his bank,

Yes. What Schulz doesn't tell you is that the employee whose name he put on that card was thus exposed to legal liability for complicity in Simkanin's fraud.

Dick's a real upstanding guy, ain't he? Drag his own employees under the bus with him.

[Paul C. Jesup]

I could make a very good arguement that the current regulation and taxation system and those that are employed to run and enforce it are very "cult-like".

[Poohbah]

Dick's a real upstanding guy, ain't he? Drag his own employees under the bus with him.

That employee is obviously a traitor to America because she wasn't willing to go to prison on Dick's behalf.

To quote Xander Cage (played by Vin Diesel): "The moral is, don't be a dick, Dick!"

[sinkspur]

I could make a very good arguement that the current regulation and taxation system and those that are employed to run and enforce it are very "cult-like".

Make it to Congress. They are the ONLY PEOPLE who can do something about it.

[Paul C. Jesup]

Make it to Congress. They are the ONLY PEOPLE who can do something about it.

I doubt. Check out my post here, I pretty much sum my feels for the most part: http://www.freerepublic.com/focus/f-news/1053811/posts?page=87#87

[Hon]

"the failure to state a specific statute which has been broken"

Here is what "We The People Themselves have to say about that:

> Here is the Title 26 tax law that employer Simkanin was charged with
> violating:
>
> "Section 7202. Willful failure to collect or pay over tax.
> Any person required under this title to collect, account for, and pay
> over
> any tax imposed by this title who willfully fails to collect or
> truthfully
> account for and pay over such tax 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."

--From a We The People email "Newsletter"

http://www.mail-archive.com/cypherpunks-moderated@minder.net/msg07011.html">http://www.mail-archive.com/cypherpunks-moderated@minder.net/msg07011.html

You are simply spreading misinformation. Why?

[Hon]

"Dick's a real upstanding guy, ain't he? Drag his own employees under the bus with him."

Was that his sister-in-law? The one he tried to make President of the company so she would go to jail instead of him?

[sinkspur]

I believe it was.

I was unaware that Simkanin tried to get a refund on $235,000 that he never paid.

So, he's a thief in addition to being a fraud?

Bob Schulz is defending known thieves now. That's what it's come to.

[patriot_wes]

And isn't it interesting that the Government Accounting Office - GAO recently told a congressman that "there is no statute authority for the IRS to demand that employers withhold anything from their employees paychecks"?

[Hon]

Man guilty of 29 tax violations

http://www.dfw.com/mld/startelegram/news/local/7660301.htm

By Max B. Baker

Star-Telegram Staff Writer

Simkanin was convicted on 10 felony counts of failing to withhold about
$139,000 in taxes from employees' wages and 15 felony counts of filing false tax refund claims for about $235,000.

He also was found guilty of four misdemeanor counts of not filing individual
income tax returns from 1998 to 2001. Simkanin had an estimated gross income of about $410,000 during those years, according to the indictment.