Cohen

Appellant Cohen stands convicted on three of five counts of an indictment charging income tax evasion and one count based upon a false financial statement given to Treasury Department agents. Two counts were dismissed.

Cohen was sentenced to imprisonment of five years on each count and a $10,000 fine, the sentences to run concurrently and the payment of $10,000 to satisfy the fines in full. Hence, the total of the sentences imposed did not exceed the maximum provided by law for each count.

Counts One, Three and Five of the indictment charged appellant with wilful and knowing evasion of his income taxes for the years 1946, 1947 and 1948 within the meaning of 26 U.S.C.A. § 145 (b). The Government’s proof was based upon the so-called “expenditure method.” This method involves determination of the taxpayer’s net worth at the beginning of'a period and computation of the taxpayer’s expenditures during the period. If such expenditures exceed reported income for the period and net worth has remained constant or changes otherwise accounted for, the conclusion may be drawn that total income was not properly reported. In the instant case the Government claims to have established that the…