United States v. Marvin Miller

This is an appeal from appellant’s conviction on 22 counts of a 24-count indictment charging tax evasion ( 26 U.S.C. § 7201 ), making and subscribing false tax returns ( 26 U.S.C. § 7206 (1)), mail fraud ( 18 U.S.C. § 1341 ), and filing false claims against the United States ( 18 U.S.C. § 287 ).

During the period of January 1, 1968, through June 1, 1970, Miller operated Covina Publications, Inc. (“Covina”) and two related companies. The primary business of Covina was the sale of adult books, films and devices to the general public by mail order and to wholesale distributors. Miller dominated and controlled Covina, for which he received a set salary. He purchased all issued stock of the corporation for $128,-200.00, which stock was held in the names of his four children, and (perhaps) his wife.

In the course of the trial, it was not disputed that for the fiscal year ending May 31, 1969, approximately $562,000.00 of mail order and distributors receipts were not recorded as sales on the corporate books, or reported in the corporate tax returns filed by Miller. About $298,000.00 was likewise omitted as sales from the books and tax returns for the fiscal year ending May 31, 1970.…