United States v. S. Steve Sourapas and Crest Beverage Company

An indictment was returned by the grand jury against Crest Beverage Company (Crest) and S. Steve Sourapas, president of Crest, charging both with attempted income tax evasion and subscribing to false income tax returns. Motion by both of the defendants was filed June 25, 1974, to suppress evidence obtained by Special Agent Saetta derived from examination of defendants’ records during the period from November 10 to November 14, 1969 and for the return of any property seized. 1 Such motion, after a hearing, was sustained by the trial court on September 2, 1974, solely upon the ground that the special revenue agent had failed to comply with IR — 897 publicized by a press release on October 3, 1967, as amended by IR — 949 publicized by a press release on November 26, 1968. 2 The Government has appealed from such order pursuant to 18 U.S.C. § 3731 .

The three grounds urged by the defendants in support of their motion to suppress are:

1. )The records were obtained by fraud, trick and deceit.

2. The November 10 examination violated the re-audit provisions of the IRC.

3. The November examination was in violation of IRS publicized regulations.

The court filed no memorandum…

ORDER ON PETITION FOR REHEARING

The motion of the government to correct the opinion herein reported as 515 F.2d 295 , (9th Cir. 1975), is granted. In the opinion the term “Revenue Agent” is used. We think a “Special Agent” is generically within the term “Revenue Agent.” But it should now be understood that “Revenue Agent,” as it appears in the opinion means “Special Agent.” The government feels this is important.

The petition of the appellees for a rehearing in banc is first treated as a petition for a rehearing by the panel. As such, the petition is denied by the panel.

Secondly, the petition of the appellees for a rehearing is treated as a suggestion for a rehearing in banc.

The panel has advised the court in banc (Circuit Judge Wallace not participating) of the panel’s vote. No circuit judge has requested a rehearing in banc. Therefore, the suggestion for a rehearing en bane is denied.

515 F.2d 295 75-1 USTC P 9379 UNITED STATES of America, Plaintiff-Appellant, v. S. Steve SOURAPAS and Crest Beverage Company, Defendants-Appellees. No. 74-2565. United States Court of Appeals, Ninth Circuit. March 27, 1975. As Corrected on Denial of Rehearing and Rehearing En Banc June 3, 1975. David P. Curnow, Asst. U. S. Atty., San Diego, Cal. (argued), for plaintiff-appellant. James S. Marinos, San Diego, Cal. (argued), for defendants-appellees. OPINION Before CHAMBERS, Chief Judge, VAN OOSTERHOUT, * Circuit Judge, and EAST, ** District Judge. VAN OOSTERHOUT, Circuit Judge: 1 An indictment was returned by the grand jury against Crest Beverage Company (Crest) and S. Steve Sourapas, president of Crest, charging both with attempted income tax evasion and subscribing to false income tax returns. Motion by both of the defendants was filed June 25, 1974, to suppress evidence obtained by Special Agent Saetta derived from examination of defendants' records during the period from November 10 to November 14, 1969 and for the return of any property seized. 1 Such motion, after a hearing, was sustained by the trial court on September 2, 1974, solely upon the ground that the special revenue…