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Sep. 20, 2007
Copyright © Las Vegas Review-Journal

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."

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    • 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.

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    martin simms wrote on April 11, 2008 10:47 PM: With friends like our government encouraging the vilest terroist group in the world,who needs our Iran-Iraqui
    enemies? Into Hades for both!


    Joe wrote on January 14, 2008 11:30 AM: Good day,
    The rest of MJS's clipped quote are here:
    1) The Secretary of the Treasury may accept, hold, administer, and use gifts and bequests of property, both real and personal, for the purpose of aiding or facilitating the work of the Department of the Treasury. Gifts and bequests of money and the proceeds from sales of other property received as gifts or bequests shall be deposited in the Treasury in a separate fund and shall be disbursed on order of the Secretary of the Treasury. Property accepted under this paragraph, and the proceeds thereof, shall be used as nearly as possible in accordance with the terms of the gift or bequest.
    (2) For purposes of the Federal income, estate, and gift taxes, property accepted under paragraph (1) shall be considered as a gift or bequest to or for the use of the United States.

    So, that paragraph says that the Sec of Treas may treat a gift as a gift. It doesn't say that collected income taxes are a gift.(http://www.law.cornell.edu/uscode/html/uscode31/usc_sec_31_00000321----000-.html)

    Yes, the truth will set you free. You just have to read more to find it. And what you're offering is a convenient clip of the truth, taken out of context. That's not setting anyone free.

    Try Title 26. It's all there. Truthfully.

    Be well and stay safe all.
    Joe

    BTW, the other sections? More out of context clips.


    Michael Jack Stephens wrote on January 05, 2008 06:45 AM: Title 31 U.S.C.Sec. 321 (d)(2): for the purpose of this chapter, federal income, estate, and gift taxes are considered a gift or bequest paid to the United States.

    Title 42 U.S.C. 401 (i)(1): the managing trustee of the United States may accept gifts or bequests paid to the federal old age pension fund; MADE UNCONDITIONALLY,,,,,

    Flemming v Nestor (1960) worker have no legal claim to their contributions or accured benefits....

    social security is not mandatory.....

    sec. 809 of the Social Security Act of 1935; the sale of postage stamps will pay for the collection and payment of tax imposed by this title.....
    What Title: Title 8 ; workers employment taxes.....

    the truth will set you free....

    Michael


    Dearly wrote on December 18, 2007 03:45 PM: Praise God, the jurors saw the truth!


    n.m.s. wrote on November 27, 2007 05:01 PM: Hmmm... wonder why this didn't make headline news? It is crazy that the feds in cases like this get away with these sorts of scare tactics, trumping up charges. If there is a conspiracy in this case, it is the unabaited effort to uphold a fraudulant currency and protect the worst rackateering ring in the U.S.A.--that is the IRS and the Federal Reserve. Thank goodness the majority of the jurors had their heads on straight.


    grayproduct wrote on November 17, 2007 12:36 AM: www.financialpetition.org, be heard!


    Steve Howland wrote on November 16, 2007 03:19 PM: Interesting case! Similar, it seems, to the FBI & Secret Service raid on the "Liberty Dollar" headquaters in Evansville, Indiana yesterday morning.
    (15 NOV 2007)


    user wrote on November 15, 2007 08:47 PM: See google videos "Money as Debt" "Monopoly Men" "The Money Masters" "America, Freedom to Fascism" and "Zeitgeist" to get an understanding of this chess game from the other side of the table.


    Joe wrote on November 12, 2007 03:50 PM: Good day,
    Steve, that could be. Or maybe most Judges are law abiding citizens of our country that value the Constitution, follow case law and precedent and see arguments regarding the lack of a law as frivelous. I know. It's a hell of a reach.

    But why stop there. Let's try a different hypothetical. Let say ANY conspiracy that you can't disprove IS true. So, really, we're not free. We exist in bubbles, like in The Matrix. And income taxes aren't REAL. The Government isn't real. You're friends, family and such, all electronic fakery. So the machines can live.

    Orrrrrr, we live in a world of people, some with power and little regard for the specifics of your situation, some with more. Somethings suck, because that's life and somethings are great for the same reason. We do what we can to make our neighborhood a better place, our families a little more fulfilled and our children happy. Most people who worked harder, or had some unique skill, or were born to privilege do better than us. Some don't.

    Really, is that such a hard world to live in?

    Be well and stay safe all.


    Steve wrote on November 09, 2007 11:02 PM: Joe wrote:
    "The IRS ... tend to lose on process issues,... They don't lose on the legality of the income tax."

    That's because judges will typically be prep'd by gov't to deny defendant's ability to introduce any evidence in a new type of case that might nullify the legality of regs. See http://en.wikipedia.org/wiki/Gold_Bullion_Coin_Act_of_1985


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