Texas pool hall couple in court

[Demosthenes]

Beaumont Enterprise
Vidor man facing possible prison time over tax case represents himself in court By COLIN GUY December, 2, 2008

In the courtroom equivalent of David versus Goliath a Vidor man took the stand in federal court Tuesday, acting as both defense counsel and as a defendant against charges that he violated federal tax law.

Thomas Parker, the 64-year-old former owner of The Cue Stick billiards hall in Beaumont, is charged with seven counts of making false statements on a tax return after he allegedly submitted amended returns "zeroing out" the income he had previously claimed.

Parker is also charged with five counts of failing to file a tax return.
His wife, Margaret, is charged with aiding and abetting on each count.

"My name is Thomas Parker and I'm very nervous," Parker said shortly after taking the stand.

Parker elected to defend himself against the charges, although the court provided a "stand-by" attorney avail-able to answer questions during the proceedings. Zachary Hawthorn, a public defender, provided defense for his wife.

Parker told the jury that he and Margaret, his high-school sweetheart, opened The Cue Stick in 1982. She managed the bar while he helped out and worked at an Orange steel mill for many years.

In the 1990s, he said, they fell behind on their income taxes, as well as other taxes due such as employment taxes. In 2001, he said, they met with an Internal Revenue Service officer and set up a payment plan, roughly $1,700 a month, but learned after one year that the amount they owed had grown to about $110,000, a $30,000 increase, because they did not pay enough to keep up with interest and penalties.

Parker said he turned to the Internet for advice about his tax problems and that while he "found what I thought were real nuts," some of the opinions people shared seemed to make sense, among them a man Parker said he believes is now in jail.

"Perhaps he didn't make enough sense," Parker said.

Still, Parker said he is convinced that the federal income tax can not legally be applied to most people. The way the law is written, he holds, means that it applies only to foreign residents living in the United States, the residents of U.S. territories such as Puerto Rico and a small number of other groups.

"I was looking for a way to get out of it, I admit it," he said. "But reading the tax laws my understanding was I was not liable for taxes and did not owe it."

Hawthorn, Margaret Parker's attorney, argued that since her husband has historically handled the couple's tax returns it would set a dangerous precedent to hold her accountable for any incorrect information contained within, even though she signed the documents.

Robert Rawls, the federal prosecutor, urged jurors to use common sense, noting that Margaret Parker was involved in the day-to-day operations of their pool hall and even identified herself as its accountant on a document submitted to the Texas Alcoholic Beverage Commission.

"She clearly knew what she was doing," he said.

Jurors will continue deliberations in the trial today.

[Demosthenes]

Vidor couple found guilty of falsifying tax documents, failure to file
By COLIN GUY
December, 3, 2008

A Vidor couple accused of seven counts of falsifying tax returns and five counts of failure to file tax returns has been found guilty by a jury in federal court.

Thomas Parker, 64, and Margaret Parker, 65, face up to three years in prison and a $100,000 fine on the charges that they knowingly filed incorrect information on seven tax returns. The couple faces up to a year in probation on the charges that they did not file tax returns for five years and a $25,000 fine.

The couple could also receive probation. Zack Hawthorn, the attorney representing Margaret Parker, said he believes the judge will strongly consider probation for his client.

Thomas Parker, who represented himself at trial but had the assistance of stand-by counsel available, argued in court that he did not believe that he was liable for federal income taxes based on how the tax laws are written. Parker amended seven tax returns from the 1990s to reflect that he owed no income tax, then did not file another tax return until tax year 2007, according to testimony.

Parker testified that the couple, former owners of The Cue Stick pool hall, got behind on their taxes and after trying to work with the Internal Revenue Service he discovered information on the Internet that led him to believe that the federal income tax could not be applied to him.

[The Observer]

In the 1990s, he said, they fell behind on their income taxes, as well as other taxes due such as employment taxes. In 2001, he said, they met with an Internal Revenue Service officer and set up a payment plan, roughly $1,700 a month, but learned after one year that the amount they owed had grown to about $110,000, a $30,000 increase, because they did not pay enough to keep up with interest and penalties.

This is where the door opened to the kool-ade factory. Typical story of a small businessman running an enterprise that starts running into trouble. Instead of admitting that they were in over their heads and looking for help or shutting the business down and stopping the bleeding, they probably instead stuck their heads in a hole in the ground and hoped that things would get better. But they didn't.

No discussion on where the money was going during those years they got behind on their taxes, I would have to speculate as to whether they got involved in spending money that they really couldn't afford to spend. And beyond the value of the business (which I am presuming is long-gone since the IRS would have considered it as a potential asset to liquidate for application to the taxes) what do the taxpayers have to show for this spending?

It is probably true that the liability increased over the year, but they needed to stick with the payments and eventually the liability would decrease over time. But it is hard to ask for patientce and steadfastness when you have a ticking time-bomb that looks ready to explode any minute.

[grixit]

I'm sure the feds had no problem selling an established pool hall.

[Famspear]

Defendants Thomas B. Parker and Margaret A. Parker were both found guilty (apparently on all counts) by the jury on Wednesday, December 3, 2008.

U.S. District Court, Eastern District of Texas
case no. 1:08-cr-00099-RC-ESH

[Famspear]

On October 9th, "Thomas B. Parker, Sui Juris, Citizen of Texas State [sic], expressly not a citizen of the United States," filed a rambling, 33 page "Defendants Motion to Dismiss Indictment," also styled in the body of the text as a "Memorandum of Law in Support of His [sic] Challenge to the Jurisdiction of this Court." He contended that the U.S. District Court had no jurisdiction "to bring a criminal prosecution for alleged violations of Titles 18 or 26, United States Code, whatsoever." The text of the Motion appears to have possibly been assembled, copied, and pasted by the defendants from various tax protester sources, as evidenced by certain odd changes in the fonts in the document.

The indictment in June contained 12 counts, as to both Thomas and Margaret:

COUNT 1
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1993 Form 1040X (amended return)

COUNT 2
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1995 Form 1040X (amended return)

COUNT 3
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1996 Form 1040X (amended return)

COUNT 4
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1997 Form 1040X (amended return)

COUNT 5
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1998 Form 1040X (amended return)

COUNT 6
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
1999 Form 1040X (amended return)

COUNT 7
26 USC 7206(1) (willfully filing a false return under penalty of perjury)
and 18 USC 2 (aiding and abetting)
2000 Form 1040X (amended return)

All the above amended returns were filed on or about July 23, 2002.

COUNT 8
26 USC 7203 (willful failure to timely file a return for year 2002)
and 18 USC 2 (aiding and abetting)

COUNT 9
26 USC 7203 (willful failure to timely file a return for year 2003)
and 18 USC 2 (aiding and abetting)

COUNT 10
26 USC 7203 (willful failure to timely file a return for year 2004)
and 18 USC 2 (aiding and abetting)

COUNT 11
26 USC 7203 (willful failure to timely file a return for year 2005)
and 18 USC 2 (aiding and abetting)

COUNT 12
26 USC 7203 (willful failure to timely file a return for year 2006)
and 18 USC 2 (aiding and abetting)

Guilty verdicts on all counts. Each defendant appears to be theoretically facing up to 26 years in prison, if my math is correct. Now, where are those sentencing guidelines????.......

EDIT: The jury put the tax loss for counts 1 thru 7 at $59,165. The tax loss for counts 8 thru 12 (i.e., the amount the taxpayer owed and did not pay) was set by the jury at $47,399.

[Famspear]

A pro se protester from Vidor
Tried to argue his case like a fighter.
Citing Roe versus Wade
Wasn't much of an aid --
When the jury became the Decider.

[Famspear]

From KBMT-TV in Beaumont, Texas:

Vidor Couple Found Guilty of Tax Fraud, May Face Prison Terms

Bryan Rupp

Story Created: Dec 3, 2008 at 4:01 PM CST

Story Updated: Dec 3, 2008 at 4:05 PM CST

BEAUMONT, TX - United States Attorney Rebecca A. Gregory announced Wednesday, December 3 that a Vidor couple has been found guilty by a jury of filing false tax returns and failure to file tax returns in the Eastern District of Texas.

Thomas B. Parker, 64, and his wife, Margaret A. Parker, 65, were each found guilty of seven counts of filing false tax returns and five counts of failure to file a tax return by a jury following a two day trial before United States District Judge Ron Clark.

The jury also found that the couple caused a potential tax loss to the government of $106,564.00.

According to information presented in court, the Parkers filed amended U.S. Individual Income Tax Returns for 1993, 1995, 1996, 1997, 1998, 1999, and 2000 in which they falsely represented they had no taxable income, they owed no taxes, and sought a refund. They also failed to file tax returns for 2002, 2003, 2004, 2005, and 2006. They were indicted by a federal grand jury on June 25, 2008.

U.S. Attorney Gregory said, "It is a privilege to be a citizen of this great country and, as a consequence of that privilege, we all have a responsibility to pay our share of taxes. The failure to do so will result in harsh consequences under the law."

Thomas and Margaret Parker each face up to three years in federal prison and a $100,000.00 fine at sentencing on each of the false tax return charges and one year in federal prison and a $25,000.00 fine on the failure to file tax return charges. A sentencing date of March 2, 2009 has been set.

"IRS-Criminal Investigation is committed to assuring honest taxpayers that everyone is paying their fair share by aggressively pursuing those taxpayers who willfully fail to file their tax returns and pay their tax liability, said Michael P. Lahey, Special Agent in Charge, IRS-Criminal Investigation, Dallas Field Office".

The case is being investigated by the Internal Revenue Service - Criminal Investigative Division and prosecuted by Assistant United States Attorney Robert L. Rawls.

http://www.kbmt12.com/news/local/35497004.html

[Famspear]

From the news story posted by Demo above:

Beaumont Enterprise
Vidor man facing possible prison time over tax case represents himself in court By COLIN GUY December, 2, 2008 [ . . . ]

Clarification:

COLIN GUY should not be confused with COLON GUY, also known as Edward Lewis: Family Brown.

I'm sorry, I just couldn't resist.....

[grixit]

No problem, all they have to do at sentencing is "reject the offer" and walk out.

[Thule]

By COLIN GUY December, 2, 2008

This is just silly, a legal fiction can't work as a journalist.

[gottago]

So, basically, this couple will be expected to pay close to a million $$ in fines while spending the rest of their lives in prison. Seems a bit unrealistic, surely the IRS has already seized and sold the pool hall and whatever else they might have. How much will it cost the government to keep 2 senior citizens in prison for the next 20+ years?

Beaumont is not exactly one of the "garden spots" of Texas and I can't imagine a pool hall there to be worth that much or generate that much revenue. I guess they really screwed up when they decided to join the tax protester crowd rather than just close the business and declare bankruptcy like "normal" Americans in a similar situation.

Just another example of how the TP BS does not work

[Demosthenes]

How much will it cost the government to keep 2 senior citizens in prison for the next 20+ years?

Realistically, they are looking at closer to 2 years in prison, not 20.

Anyone know who their guru was?

[wserra]

Anyone know who their guru was?

Bagman Shree Baksheesh.

Welcome back, Demo. Have a good time?

[Demosthenes]

Welcome back, Demo. Have a good time?

Yep, despite massive flooding in Panama.

[gottago]

How much will it cost the government to keep 2 senior citizens in prison for the next 20+ years?

Realistically, they are looking at closer to 2 years in prison, not 20.

Anyone know who their guru was?

I thought the maximum 3 years/$100,000/1 year /$25,000was PER COUNT and they were convicted on 7 counts for the first thing and 5 for the second thing. I stand corrected. Two years would just be a nice long vacation

[Demosthenes]

There's usually a big difference between the maximum possible sentence and the federal sentencing guideline range.