United States v. Russell Pike

MEMORANDUM

Following a six-day bench trial, Russell Pike was convicted of one count of tax evasion in violation of 26 U.S.C. § 7201 and sentenced to 52 months’ imprisonment. Pike appeals his conviction and sentence. We affirm.

I

The elements of tax evasion are “willfulness; the existence of a tax deficiency; and an affirmative act constituting an evasion or attempted evasion of the tax.” Sansone v. United States, 380 U.S. 343, 351 , 85 S.Ct. 1004 , 13 L.Ed.2d 882 (1965) (internal citations omitted). Pike contends that he did not commit an affirmative act of tax evasion under Sansone because forward dating a stock purchase agreement “does not have the requisite effect of reducing the stated tax liability.” Id. at 352 , 85 S.Ct. 1004 . Pike correctly points out that his tax liability is based on the date he received payment for his shares, not the date specified in the agreement. But he misreads Sansone as suggesting that forward dating an agreement is not an affirmative act of evasion. The portion of Sansone that Pike relies on merely establishes that § 7201 requires a tax deficiency in addition to an affirmative act. Following the phrase quoted by Pike, the Court offers a…