Otto W. Heider, Sr., and Irene E. Lawrence v. United States

In this appeal from conviction of tax evasion appellants’ general position is that the District Court failed to exercise that care and restraint which is necessary if it is to escape the pitfalls inherent in the net-worth method of establishing guilt of this crime. Holland v. U. S., 348 U.S. 121, 129 , 75 S.Ct. 127 , 99 L. Ed. 150 (1954). We cannot agree. The case was tried to the court without jury and the court, in a written opinion, has carefully considered the disputed aspects of the case. Before us appellants renew many of the contentions made below which were dealt with by the District Court. Upon all of these we agree with the District Court for the reasons set forth in its opinion.

Appellants’ principal contention is that the evidence establishes the facts to be contrary to the factual determinations of the District Court as incorporated in its written opinion. Specifically, appellants refer to the facts respecting their intent to defraud, the opening net-worth statements, the River Bend garage inventory, prepaid insurance, the “cash hoard,” the Sheridan Church loan, and certain loans receivable. In general, appellants attack the sufficiency of proof respecting appellant…