Kay Martin Summers v. United States

This is an appeal from a judgment of the District Court wherein Kay Martin Summers was adjudged guilty upon a jury trial on each of four counts of the indictment. The first three counts of the indictment charged appellant with violation of Section 145(b) of the Internal Revenue Code, (1939) 26 U.S.C.A. § 145 (b), for filing false and fraudulent income tax returns for each of the years 1950, 1951 and 1952. The fourth count charged her with knowingly and wilfully making a material false and fraudulent statement and representation to the Internal Revenue Service in violation of 18 U.S.C.A. § 1001 . Appellant was sentenced to nine months in prison on each count, sentences to run concurrently, and a fine of $1000 on each count.

The method of proof employed rested on the “net worth” theory. To support its case, the Government introduced evidence tending to show the amount of visible assets of the appellant at the beginning and end of each of the years in question, and showing the increase of such assets to be substantially in excess of the amount of income claimed by appellant in her tax returns for the respective years. The Government also introduced certain other evidence tending to…