- 315 -
discarding of his supporting income documentation was an
intentional act designed to conceal and evade the reporting and
payment of Federal income tax.
Fifth, Kanter's commingling of his income with the moneys of
others is an indication of fraud in an attempt to avoid tax.
United States v. Walton, 909 F.2d 915 (6th Cir. 1990). The use
of IRA and the other entities by Kanter and the commingling of
the kickback moneys were part of the laundering mechanism
designed by Kanter. All of the commingling of Kanter's income,
as well as that of Ballard and Lisle, was done at his direction.
Commingling of the kickbacks in Administration Co.'s accounts,
together with other unrelated income, was designed to conceal the
kickbacks. The commingling and laundering are evidence of fraud.
Maddas v. Commissioner, 114 F.2d 548 (3d Cir. 1940); United
States v. Jackson, supra.
Sixth, Kanter's scheme was intended to "thwart the effective
functioning of the IRS" and was an attempt to disguise the source
of income. Kanter plainly attempted to disguise the source of
the kickback funds by the manner employed in sending the moneys
through conduit entities in a roundabout method over a period of
many years. Obviously, he, as well as Ballard and Lisle, did not
want Prudential and Travelers to know about the kickback
payments. Certainly, the movement of the moneys had no
legitimate business purpose.
Page: Previous 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 NextLast modified: May 25, 2011