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SOME THINGS ARE WORSE THAN PAYING TAXES...

November 28, 2007

...and going to prison is surely one of them.

Back in July we told the story of Wisconsin businessman Sheldon Lasky, who pleaded guilty to having his company pay and deduct over $875,000 in personal expenses - which he never bothered to report as income. Yesterday a federal judge sentenced him to 18 months in prison. The judge also hit Mr. Lasky with a $40,000 fine. This is on top of the $351,753 in taxes, $263,814 in civil fines, and $285,733 in interest specified in the plea agreement. This doesn't count the taxes and penalties Wisconsin is likely to impose.

Paying personal expenses with business funds is a sore temptation for the small business owner. Mr. Lasky might be able to explain why it is unwise.

Speaking of unwise, flamboyant California attorney Stephen Yagman got a three-year sentence on federal tax evasion charges yesterday, in spite of (if I were the judge, it would be because of) a four-hour long speech to the court asking for a light sentence. From the LA Times Online:

"A cage went in search of a bird," Yagman told U.S. District Judge Stephen V. Wilson, quoting from Franz Kafka's book "The Zurau Aphorisms." "I'm the bird, and they got me."

Wearing a blue suit and a sailboat-decorated tie, Yagman also quoted from, or referred to, Woody Allen, Abraham Lincoln and Socrates during more than four hours of oration. At times, he was remorseful, but for the most part, he was defensive.

Hint to Mr. Yagman: Abe Lincoln's best speech was over in two minutes, not four hours.

Russ Fox has a full rundown at Taxable Talk.

Tags: Sheldon Lasky.Stephen Yagman.tax crime.Taxable Talk.

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