Gloat, gloat, gloat . . .

Four-month trial ends with no convictions

Federal income tax evasion case involved nine defendants

By JOAN WHITELY
REVIEW-JOURNAL

A criminal tax case alleging income tax evasion and conspiracy
dissolved in federal court this week, when a jury returned zero
convictions on 161 charges faced by nine defendants.

Monday's verdict "sends a strong message," said defense attorney Lisa
Rasmussen, who represented Joel Axberg, a tile layer.

Informally called the Kahre case -- after the primary defendant, local
business owner Robert Kahre, who paid workers in gold and silver coins
-- the trial lasted four months. It relied heavily on evidence
gathered in a controversial armed raid in May 2003 on several of
Kahre's local business places. The raid entailed keeping more than 20
workers handcuffed, at gunpoint, in 106-degree heat without shade or
water while agents collected records and equipment.

"Yeah, that's a pretty major victory," said defense lawyer William
Cohan. "If you go 0 for 160 (in baseball), they'd send you down to the
minor leagues."

Cohan was upbeat although his client, Kahre, was not acquitted of any
of his 109 charges. Rather, the jury hung on all of Kahre's counts.

The jury also hung on all counts faced by Kahre's sister, Lori Kahre,
and defendant Alex Loglia.

Four defendants acquitted of all the charges against them were Axberg,
Robert Furman, Ron Ruggles, and Kahre's mother, Myra Buonomo.

"It was the most wonderful feeling and the most wonderful day in
ages," Buonomo, 66, said of her acquittal. She said she works "more or
less as a runner" for her son's construction-related businesses. Part
of the case hinged on whether Kahre's workers were employees or
independent contractors, who are responsible for paying their own
taxes.

Two other defendants, Dannielle Alires and Debra Rosenbaum, were
partly acquitted, with the jury hung on one count each.

Before trial, five additional defendants had pleaded guilty.

Michael Kennedy, who defended Lori Kahre, said the case turned on the
notion that taxpayers could be wrong without being criminal. He was
referring to the fact that his client, Lori Kahre, and other
defendants had not paid taxes according to the market value of the
precious metal content of the coins in which they were paid, as
opposed to their face value. He conceded at trial that his client may
owe federal taxes for her mistakes.

The Internal Revenue Service had never before provided guidance on how
to handle gold and silver coins that circulate, only on noncirculating
collectible coins, according to Kennedy, who is a federal public
defender. "If that's the case, we're not going to take someone's
liberty from them, on something that a (certified public accountant)
with a master's degree doesn't even know. That's a scary country, and
I don't live in that country."

J. Gregory Damm, the assistant U.S. attorney who led the prosecution,
declined to say whether the government will retry any of the five
defendants on the charges that resulted in a hung jury. Damm referred
the newspaper to Natalie Collins, public affairs specialist for the
U.S. attorney's office in Las Vegas.

Acting U.S. Attorney Steven W. Myhre issued a statement through
Collins that thanked jurors, investigators and prosecutors.
"Ultimately, the responsibility lies with the jury to decide whether
the government met its burden of proof in the case and we accept their
decision." He said the office will "soon decide" whether to retry any
defendants.

Jurors got stuck on the question of whether the government had proved
defendants intentionally violated tax law, according to David Ramirez,
jury foreman. "Oh my God, the willfulness is very hard to prove, as we
found out," Ramirez, 49, said Wednesday. "That was the hard part,
especially in the conspiracy charge." Ramirez works in management for
the U.S. Postal Service.

The government "did not present one witness who agreed with the
conspiracy theory," said attorney Joel Hansen, who defended Loglia.
Currently unemployed, Loglia did paralegal work for Kahre.

The jurors favoring acquittal varied by defendant, Ramirez said.
"Personally, I went guilty (on some counts) and some, not guilty." He
said when the 12 jurors split on a count, it was usually a 6-6 or 7-5
split.

Ramirez said the prosecuting team had a clear, although silent,
reaction to the verdict: "The head was hanging down, the shoulders
were low." He said "shocked" was the term some prosecutors used to
describe themselves when they talked to him after the trial.

Cohan did not want Robert Kahre, who testified during the trial, to
talk to reporters after the trial because his client and five others
still face additional charges in a separate criminal tax case set for
trial in January. That case alleges Kahre hid assets by having
relatives or friends buy property in their names using his funds.

Once the criminal cases are over, Kahre will pursue related civil
actions he has filed against several parties, including federal
prosecutor Damm, Internal Revenue Service agents and North Las Vegas
police officers who had roles in the raid or indictment process.
--OnryAnRkst

.

Relevant Pages

  • Another Hit on the IRS!
    ... Federal income tax evasion case involved nine defendants ... A criminal tax case alleging income tax evasion and conspiracy ... Informally called the Kahre case -- after the primary defendant, ... the jury hung on all of Kahre's counts. ...
    (misc.taxes)
  • Re: Why carbon capture and storage wont save the climate. Full report.
    ... So are you condemning our jury system? ... the defendants had a good defence. ... defendant is guilty or innocent. ...
    (uk.transport)
  • Re: Court date delayed until next week
    ... sides meet with the prospective jurors individually, ... or do the actual jury selection. ... those defendants that get convicted when they shouldn't and those ... jury will rightfully convict them of the more serious charge or the ...
    (rec.bicycles.misc)
  • Re: Court TV alert: Darlie Routier
    ... into account prior records, self defense, multiple offenses ... 10 years shorter for wife defendants than husband defendants ... For husbands tried by a jury, ...
    (alt.true-crime)