Texas Doctor Sentenced to 97 Months In Federal Prison for Bribery! Samuel M. Theagene What Were You Thinking?

You spend year after year in grueling medical school to achieve you life long dream. Then one day you wake up to find that it was only a “dream.” That’s the day you wake up and find yourself in federal prison. And each day there after you find that one day is the same as the next - and so it goes for eight long years.

That’s exactly what Samuel M. Theagene, M.D. will soon be facing. 8+ years in prison - and for what?

Between October 3, 2006, and February 21, 2007, Theagene, president of the Pain and Neuromuscular Clinic of Texas, P.A., paid a Revenue Officer of the Internal Revenue Service $16,500 in United States currency to absolve his tax liabilities.

Now what was he thinking? Surely a medical doctor has enough common sense to know that bribery of a federal official wouldn’t work? Surely, he would have calculated the risk/reward ratio and figured that he really couldn’t win this battle?

Well, the investigation began in October of 2006, when the Defendant sent $500 cash to the Internal Revenue Officer working on the collections case. Attached to the five one hundred dollar bills was a note which read “A Token.”

Now that was smart (yea right)! However, he might have played that off as a payment toward his bill. Not so fast. His next moves gave away his intent (criminal intent I might add).

Thereafter, the Defendant offered to pay the Revenue Officer 10% of the approximate $160,000 business tax liability to eliminate the debt. Between October of 2006 and February 2007, the Defendant paid the Revenue Officer cash installments of $1500, $5000, $5000 and $4500. At one of the meetings, the Defendant asked for forgiveness of his personal tax liability as well. All of the payments were made by the Defendant to the Revenue Officer in area restaurants.

Not only is Doctor Theagene going to prison, but I’d bet that the IRS is not letting off the hook without paying the liability in question.

Every choice has a consequence. Likewise, you do reap what you sow. Sadly for Dr. Theagene his choices earned him time in the slammer. I do promise this - when he gets out he will wish he’d just paid what he owed.

Business ethics and White Collar Crime speaker - Chuck Gallagher - off for now…

Wesley Snipes - Guilty and Innocent - Department of Justice Comments!

These are comments from a Department of Justice news release:

A jury today found Wesley Trent Snipes guilty on three misdemeanor charges for failing to file income tax returns. Snipes was acquitted on felony charges of conspiracy to defraud the Internal Revenue Service (IRS) and presenting a fraudulent claim for payment to the IRS. He was also acquitted on three other charges of failing to file income tax returns. Eddie Ray Kahn, of Sorrento, Florida, and Douglas P. Rosile, of Venice, Florida, were found guilty of conspiracy to defraud the Internal Revenue Service (IRS) and presenting a fraudulent claim for payment to the IRS.

A sentencing date has not been set. The conspiracy and false claim charges each carry a maximum sentence of five years’ imprisonment. Snipes faces up to one year imprisonment on each charge of failing to file income tax returns.

Kahn was the founder and leader of American Rights Litigators (ARL), a tax protestor organization based in Lake County, Florida. Rosile prepared returns for ARL clients, such as Snipes.

U.S. Attorney Robert E. O’Neill stated, “Filing tax returns is not optional. It is a legal requirement. Mr. Snipes now faces up the three years in federal prison for his willful failure to comply with the law.”

“The jury’s conviction of Wesley Snipes today represents the latest in a long string of criminal convictions by the Justice Department and the IRS against tax protestors,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division, “Those who unlawfully dodge their tax obligations should know that they face long prison terms and stiff financial penalties.”

“Our criminal justice system has once again determined that there are no legal grounds for failure to file or pay federal taxes. There is no secret formula that eliminates a persons’ tax obligations — the law is very clear: people must pay their taxes. Today’s conviction again reminds all honest taxpayers that arguments from those who promote tax schemes are simply wrong and do not stand up to the scrutiny of the law,” said acting Internal Revenue Service Commissioner Linda Stiff.

Clearly the IRS would have liked more, but the main culprits have been convicted and a clear message has been sent. According to Snipes attorney, Snipe will now comply. Likewise, the IRS has said it will seek civil penalties and pursue Snipes till all that is due is paid.

And yet one more time the government establishes the long standing requirement (regardless of certain tax protesters opinions) that there are two things in life that are true - death and taxes.

Business Ethics Speaker - Chuck Gallagher - signing off…