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'BIGGEST TAX EVASION CASE' ENDS WITH GUILTY PLEA

September 08, 2006

Telecom millionaire and space exploration figure Walter Anderson pleaded guilty to two counts of tax evasion and one count of tax fraud today. The plea deal settles criminal charges that he evaded taxes on $450 million of income. By pleading the case down to two evasion counts and a fraud count, he reduced his maximum sentence from 80 years to 10 years, according to the Associated Press. This was billed as the biggest personal tax evasion case ever, at least in terms of the amount of tax at stake.

Given the size of the tax loss, don't be surprised if he gets the maximum sentence. Assuming the judge will use the current sentencing tables, the $170 million tax loss that the government alleges puts him at offense level 32. The lowest guideline sentence for that offense level is 121 months. Given the "sophisticated means" that the indictments alleged, it's hard to see that sentence getting below the maximum 120 months.

Mr. Anderson is said to be an "Anarcho-Capitalist":

Anarcho Capitalists argue that private enterprise can provide law enforcement, and the market place can resolve disagreements about what the law is and what the law means

Maybe this means the plea agreement will call for him to go to a Wackenhut facility.

Links:

Complete Tax Update Walter Anderson coverage

TaxProf Blog coverage

More Links:

Washington Post
Bloomberg.com

Wall Street Journal ($link)

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