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Tax cheat saves $100+M through gov't "typo" (AP/CNN)

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eppur_se_muova Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:05 PM
Original message
Tax cheat saves $100+M through gov't "typo" (AP/CNN)
Judge can't fix government's $100 million boo-boo

WASHINGTON (AP) -- It was a $100 million mistake, and a federal judge said Friday he does not have the power to fix it.

The U.S. Justice Department erred last year and cited the wrong law in a binding plea agreement with telecommunication entrepreneur Walter Anderson, the largest known tax evader in U.S. history. That mistake made it impossible for the government to recover between $100 million and $175 million, U.S. District Judge Paul L. Friedman said in March.

Prosecutors urged him to reconsider, but Friedman reluctantly said Friday that his hands were tied.

"The court is not free to read something into a contract that is not there or to interpret uncertain language in the government's favor," Friedman said.

Although prosecutors described the error as "a typo" -- typographical error -- and not "something that the court should be getting wrapped up about," Friedman said he could do nothing else.
***
more: http://www.cnn.com/2007/LAW/06/15/big.mistake.ap/index.html
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bbinacan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:07 PM
Response to Original message
1. OOPS. n/t
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elehhhhna Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:10 PM
Response to Original message
2. They've stated the FEd will go after the cash in a civil suit.
DOJ -- heckkuva job, Gonzo.
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entanglement Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:11 PM
Response to Original message
3. Somebody evades paying $100 Million in taxes because of a TYPO?
:wtf:
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baldguy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:21 PM
Response to Reply #3
5. Hey! That typo cost him good money!
It's just that it didn't go to the gov't.
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:23 PM
Response to Reply #3
7. My guess is that since laws are cited in the filing by statute #,
it IS possible some nitwit typed one digit wrong. The BIG problem I see is that those filings are ALWAYS reviewed by several peers before they are finally filed, so is EVEYRYBODY blind in the DOJ? For God sake, typos happen all the damn time, but they're SUPPOSED to be caught!!!!

Must be all those superstars they hired from Regent!
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helderheid Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:13 PM
Response to Original message
4. Cats working for the government
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Elspeth Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:22 PM
Response to Reply #4
6. Cats are smarter than people working for the DOJ now
Edited on Sat Jun-16-07 07:24 PM by Elspeth
And they make fewer typos.
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Canuckistanian Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:27 PM
Response to Original message
8. How do we feel about Lew Rockwell?
Edited on Sat Jun-16-07 07:29 PM by Canuckistanian
Here's an article about Walter Anderson, painting the man as an oppressed victim of an "incredibly savage hatchet job" by the government.

From Lew Rockwell's site.

BTW, I got this from a cached page from Google. The original is gone.

For your enlightenment:

Three things strike me immediately from all this: (1) the incredibly savage hatchet job being done to Anderson by the media, trying and convicting the man well in advance of any trial, (2) the gross hypocrisy of the government's action, given that better politically "connected" miscreants, such as Marc Rich or Halliburton, get a free pass, and (3) the absolutely hideous nature of what our system has morphed into, whereby a successful man like Anderson is compelled to go to such great lengths to keep the wealth he peacefully and honestly earned.

The press have painted a damning picture of Walt Anderson as a quixotic and aberrant individual obsessed with phony identities, "underground books" about "disappearing," and of course all those questionable offshore business dealings allegedly designed solely to hide income. I mean, my God, he reads unusual books and he wears black clothes. He must, therefore, be a deviant, malcontent tax evader! (Never mind that my teenage daughter also dresses in all-black "goth" fashion, black clothing has always fashionable in the "hip" circles from the East Village to L.A., the "underground books" they mentioned are openly available for sale on the Internet, and while performing certain activities under an assumed name may be considered illegal, having a second passport – under your own name – definitely is not.)


http://72.14.209.104/search?q=cache:zI6hQpMqmC8J:www.lewrockwell.com/orig6/olson1.html+Walter+Anderson+contributor+-inglis+telecom&hl=en&ct=clnk&cd=2&gl=ca

I don't know what to make of it.
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Nite Owl Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:41 PM
Response to Reply #8
9. Libertarian
love Ron Paul. Anti war but anti everything else too.
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eppur_se_muova Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:43 PM
Response to Reply #9
11. "compelled to go to such great lengths to keep the wealth he peacefully and honestly earned."
i.e. he didn't want to cheat, but the gov't FORCED him to! He HAD to do it! And we know without question that his money was HONESTLY earned -- it couldn't be otherwise!

Yes, you're right -- knee-jerk libertarian.
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eppur_se_muova Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:41 PM
Response to Reply #8
10. Here's an article from WaPo about the conviction ...
Telecom Mogul Guilty of Tax Scam
Defendant Admits To $365 Million In Hidden Income

By Eric M. Weiss
Washington Post Staff Writer
Saturday, September 9, 2006; Page B01

A former telecommunications tycoon accused by prosecutors of being the biggest tax cheat in U.S. history pleaded guilty yesterday in a deal that calls for him to serve no more than 10 years in prison.

Walter C. Anderson, a Washington-based businessman who amassed a fortune during the tech boom of the 1980s and 1990s, admitted to hiding $365 million in income by using aliases, shell companies, offshore tax havens, secret accounts and drop boxes in the Netherlands. He was so wealthy that he talked at one point about leasing the Russian space station Mir -- all the while dodging his taxes, officials said.

Prosecutors said Anderson avoided paying $200 million in taxes from 1995 through 1999 in what they say is the largest personal income tax evasion case brought in the United States. As part of his plea deal, Anderson agreed that the court could order restitution. But how much the government can collect is a big question: The onetime mogul, 52, who had a multimillion-dollar art collection and other trappings of success, has filed for bankruptcy.

Anderson pleaded guilty at the federal courthouse in Washington to three felony charges -- two for evading federal taxes and one for defrauding the D.C. government with a phony tax return. Among other things, Anderson admitted earning more than $126 million in 1998, a year that he claimed an income of $67,939 on his federal tax return. He paid $495 in taxes that year, authorities said.
***
more: http://www.washingtonpost.com/wp-dyn/content/article/2006/09/08/AR2006090801126.html

I'm trying to remember the last time I paid as little as $495 in taxes ...
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Rex Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jun-16-07 07:50 PM
Response to Original message
12. Excuses me agent mike but
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA...HAHAHAHAHAHAHAHAHA!

Fucking stupidest government EVER.

Oh and, HAHAHAHAHAHAHAHAHAHAHAHAHA!
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