United States v. Dennis G. Crum

Crum was convicted on four counts of aiding and assisting in the preparation of false income tax returns [ 26 U.S.C. § 7206 (2)] and on this appeal argues that (a) the indictment is infirm because Section 7206(2) is inapplicable to those not preparers of tax returns, (b) the evidence was insufficient to sustain the verdict, and (c) the defendant was entitled to acquittal as a matter of law because of reliance on advice of counsel. There being no merit to any contention, we affirm the conviction on all counts.

An attorney, Galas, devised a scheme of enticing high income taxpayers and physicians in particular to invest in domesticated beavers as a tax shelter device. Galas solicited the aid of Monroe, an accountant, and Crum, who bred and sold beavers. The scheme employed the fraudulent use of depreciation deductions by backdating beaver purchase contracts. As purchasers became involved, Galas and Monroe participated by preparing the doctors’ income tax returns.

All three schemers were indicted. Their usual procedure was to visit a prospect, ask for his income figures for his yet unfiled tax return, then suggest how many beavers he would need to reduce his income tax by…