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Gilmore as 'expenses paid or incurred * * * in carrying on any
trade or business' within the meaning of section 162(a)." Id. at
689.
The criminal convictions in this case provide proof of
petitioner's involvement in an illegal trade or business. The
indictment alleges that
6. The Chicago organized crime family obtained
income through the pursuit of a variety of illegal
activities, including but not limited to bookmaking,
loansharking, extortion, illegal gambling, trafficking
in stolen property, and fraud, and would travel in
interstate commerce in furtherance of those activities.
It also alleges that petitioner was a "crew chief", or a mid-
level leader in the Chicago organized crime family. The
indictment chronicles petitioner's involvement in one particular
money-making scheme. Specifically, petitioner and his
confederates planned to invest money in a gambling operation
without disclosing to the Rincon Indians that the money came from
the Chicago organized crime family. They planned to structure
the gambling operation in such a way that the crime family would
maximize its profits at the Indians' expense. They also planned
to skim profits and use the operation to launder funds from other
illegal activities of the crime family.
The criminal charges against petitioner originated from his
business activities as a member of the Chicago organized crime
family. His legal fees, incurred in defense of those charges,
are deductible under section 162(a).
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Last modified: May 25, 2011