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In 1984, Federal agents, investigating a pattern of arsons
at adult theaters, searched MBS’ premises and seized books and
records which included those of petitioner. In connection with
this search, a grand jury, on September 9, 1988, handed down a
seven-count indictment against Mr. Mohney, Ms. Scribner,
Mr. Tompkins, and Mr. Klein (collectively referred to as the
Defendants) for various criminal tax violations. The indictment
generally charged that Mr. Mohney, through separate corporate tax
returns, concealed his ownership of several adult-oriented
businesses and filed false personal tax returns. The other
defendants, who were all employees of MBS, were charged only in
count I of the indictment. Count I charged the Defendants with
conspiracy to defraud the Government through the concealment of
ownership of the adult-oriented businesses on the tax returns, in
violation of 18 U.S.C. sec. 371. The remaining counts charged
Mr. Mohney with filing false individual income tax returns for
the 1981, 1982, and 1983 taxable years (see sec. 7206(1)), and
with aiding and assisting in the filing of false corporate income
tax returns on behalf of Otis Mohney, Inc./International
Amusements, Ltd. (see sec. 7206(2)). The remaining counts
stemmed from the failure of International Amusements, Ltd., to
report income it earned and diverted to Mr. Mohney for his
personal benefit. All of the Defendants except Mr. Klein pleaded
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