McNulty

MEMORANDUM OPINION AND ORDER

On or about March 24, 1973, the defendant, Franklin L. McNulty, won the Irish Hospitals Sweepstakes. He collected 50,000 Irish pounds, or $128,410 at the prevailing, rate of exchange. Defendant soon learned, however, that he had a silent partner which would claim its share of the prize. That partner was the Internal Revenue Service, whose interest defendant sought to defeat by collecting his winnings in Ireland and depositing them in a secret bank account on the Island of Jersey, which is located between the United Kingdom and France.

In a narrow sense, defendant has been successful in his efforts to avoid sharing his winnings with the government, for the money apparently remains on the Island of Jersey. Defendant himself, however, having been convicted of income tax evasion, remains in federal prison. On January 23, 1978, moreover, the government prevailed in a civil action for collection of taxes, and defendant was found liable in the amount of $67,791, representing taxes, penalty and interest. The government, though successful in its action, is unlikely to collect its money unless defendant transfers his assets from the Island of Jersey, fór he…