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Four-month trial ends with no convictions

Federal income tax evasion case involved nine defendants

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.


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  • 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.

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    Report abuse

    awk wrote on January 09, 2009 11:41 AM: Good job for the defense.
    It warms my hart to read the irs extortionists have lost this case. Must be a blow to the nazis back on the ranch.


    Report abuse

    joe nugent wrote on October 26, 2008 11:30 AM: Sunday's paper listed a web site for voter information. www.lvrj.com/voterguide Can't get there using aol. what gives?


    Report abuse

    Brant Honkanen wrote on June 11, 2008 02:26 PM: Kahre, will loose in any federal or state civil action against the government agents. The goverment grants itself a variety of various immunities: Absolute immunity, judicial immunity, quasi immunity, sovereign immunity, statatory immunity, etc, etc, etc,. Under Rule (56) the courts will grant summary judgemnt stating: "There are no genuine issues or matereial facts for a jury to determine and as a matter of law the goverment must prevail." The dismissal of all cases of People against the government is standard common practice. The fact, is today there is no redress of any kind against the present government on any level. A member of "The Body Politic", "We The People" cannot get to a jury in order to have His/Her case heard. Chief-Federl-Judge ,Reed, in Reno, NV., has set the standard here in Nevada. The right to a jury trial in a civil action, and the right to redress and petition are dead rights. They are dead not because We don't have the right, but dead because We have no means, no access, no ability to exercise the rights. I know, "your" case will be the exeption, because whatever reason you think it is. Stop fooling yourself! If you go to the unpublished opinions you'll find thousands and thousand of cases of Americans who have been trampled under the jack-boots of the government and their cases are all dismissed, and they are left broken. No jury, no redress! Rule (56), Summary Judgment for the government! Your goverment claims to be Sovereign, the King of England was Sovereign, Ceasar and the Tzar were Soveriegn, God is soveriegn. The government Soveriegn says you as a subject, or citizen, member of, "The Body Politic" "We The People" cannot sue our masters the usurped soveriegn government. Good luck slaves.


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    Sy Leopold wrote on June 09, 2008 02:49 AM: It appears that at least some Americans have had it with the fraud and intimidation by which the IRS most assuredly operates.
    Unfortunately most jurors seem to not understand that there is absolutely nothing whatsoever 'patriotic' associated with paying IRS income taxes. Far too many Americans seem to think that the government needs IRS taxes in order to 'run the country.' This is totally untrue! IRS taxes are essentially used to pay for the interest accrued on the national debt of a country that is and has been hopelessly bankrupt for many decades.
    It seems to me that these facts should be made obligatorily available to all US jurors before they consider the guilt or innocence of anyone accused of any form of IRS tax related charges.
    Freedom has never been free. It has to be fought for in every generation in order to simply maintain what freedoms we still have left, before we can hope to regain what has so sadly been lost.
    No one with any genuine integrity can work for an agency that is so clearly fraudulently 'established' and undoubtedly unconstitutional as is the IRS without completely losing all traces of professional honorability.


    Report abuse

    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!


    Report abuse

    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.


    Report abuse

    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


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


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    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.


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


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