Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

THE WEEK IN TAX CRIME

January 21, 2006

DEFINITIONAL DIFFICULTIES IN PHILADELPHIA:

The online edition online edition of the Philadlphia Inquirer reported yesterday:

Philadelphia restaurateur Neil Stein, who admitted that he skimmed at least $500,000 cash from his high-end establishments over a three-year period, was sentenced to one year in prison on tax evasion charges this afternoon.

Perhaps Mr. Stein's difficulties are traceable to some confusion over the meaning of "crime."

Before he was sentenced, Stein told Pollak that he had been addicted to cocaine, heroin, percocet and alcohol for much of his life.

"I am not a crook," he told the judge. "I was using a diseased brain to make decisions."

Maybe laws are different in Philadelphia, but if I'm not mistaken, cocaine and heroin are illegal there, too - making Mr. Stein a "crook," as I understand the term.

That said, Mr. Stein has enough moxie that he's likely to bounce back sometime. He is also "NEIL STEIN, The Man Who Said No to the President of the United States of America":

The Striped Bass happens to be a very popular restaurant, and it's next to impossible to secure an immediate reservation on a Saturday night. But the President of the United States could probably get the Beatles back together, and if he wants dinner, he gets dinner. All it takes is a simple phone call.

Unless the phone is answered by Neil Stein, the proprietor of the Striped Bass...

According to Stein, "there was only one decision to make. We had 300 reservations for that Saturday night, and these reservations are made some eight weeks in advance. People come here for some very important occasions including graduations, anniversaries, important business deals, and things like engagements. You want me to tell someone that they can't get engaged in the Striped Bass because the President wants to have dinner in my restaurant?"

"I have 127 employees who know exactly where I stand with my customers. They know my priorities. If I make a decision that is good for the Restaurant only, and without regard to my loyal customers and my staff, the Striped Bass would never be the same."

The man has nerve, no doubt about that. One only hopes that standing up to the President didn't attract unwanted attention to Mr. Stein.

MEANWHILE IN NEW JERSEY...

The Asbury Park Press reports:

A state Superior Court judge has sentenced a Rumson resident to four years in state prison for evading $4.6 million in business taxes.

The sentencing ends what state officials said is the biggest criminal tax-evasion case they have brought in New Jersey history.

Michael J. Buonopane, 45, a lawyer, accountant and businessman, already has repaid the $4,642,452 in federal and state employee-withholding taxes and state sales tax. He has three years to repay $1 million in interest on the taxes, along with $250,000 in penalties to the state, according to state Deputy Attorney General Denise Grugan.

His lawyer sought leniency, telling the court that Mr. Buonopane suffers depression and an anxiety disorder. If I were facing four years in a New Jersey prison, I too would be depressed and anxious.

"SURVIVOR" HATCH LAYS IT ON THICK

Richard Hatch's tax trial continues. He apparently is switching from the "blame the accountant. Oh, I'm the accountant" ploy to the "I hope the jury is really stupid" strategy:

The reality champ's defense attorney dropped a bombshell Friday at Hatch's federal tax evasion trial, alleging that Survivor producers struck a deal with Hatch while he was a contestant on the show, agreeing to pay the taxes on his million-dollar prize if he won.

The bargain purportedly came about after Hatch allegedly caught some of his fellow contestants cheating by having friends sneak food to them on the island. He told producers, who ultimately attempted to buy his silence, the story goes.

That's right, Mr. Hatch is in tax trouble because he's just too honest. O-kaaay... Let's ponder this.

Mr. Hatch caught fellow contestants cheating. He tells the producers. Do they make it part of the show and throw the cheaters off? No, they try to corrupt Mr. Hatch!

Do they offer him cash? Some decent clothes, so he doesn't have to run around naked? No! They offer to pay is taxes if he wins. And, not having won anything yet, Mr. Hatch says that's fine, he'll take a flyer on maybe saving future taxes, rather than demanding real money now.

Yeah. Uh Huh. Happens all the time...

      Bookmark: del.icio.us • Digg • reddit