United States v. Sant R. Pallan

Pallan appeals from his conviction on one count of attempted income tax evasion, 26 U.S.C. § 7201 , and eleven counts of making fraudulent income tax returns, 26 U.S.C. § 7206 (1). Pallan’s central contention is that he was denied due process of law by a delay of approximately five years between the criminal acts and the return of the indictment. We agree with the district judge that under the particular facts of this case, the preindictment delay occasioned no violation of Fifth Amendment rights. We therefore affirm.

I

In January 1973, an IRS agent commenced a tax examination of Air Industrial Research, Inc. (AIR) of which Pallan was a corporate officer. In August 1973 the investigating agent referred the AIR audit to his superior for an investigation of potential fraud. During the period between October 2, 1973 and mid-April 1975 Special Agent Young investigated the 1971 tax returns of AIR, Pallan, and various related corporations and partnerships. At the conclusion of his examination, Young recommended the criminal prosecution of Pallan. The 18-month duration of Young’s investigation was mandated by the complex nature of the financial transactions and the confused state of…