United States v. Edgar F. X. Shields

At a jury trial appellant Shields was convicted of three counts of willful evasion of income taxes for the years 1971 through 1973. To prove its case, the Government introduced analyses of appellant’s bank deposits and withdrawals. The evidence reflected large deposits that could not be attributable to appellant’s reported income. In an effort to explain these deposits, appellant raised the “cash hoard” defense. Appellant’s accountant and business associate, one Brickert, testified that appellant had a cash hoard of approximately $33,000, part of which appellant stashed in his car, part at his home, and part at his nightclub. Supposedly, appellant’s cash hoard diminished during the prosecution years of 1971-1973 as appellant made periodic bank deposits from that reserve. Brickert also testified that appellant received two loan repayments totalling $9000 during the years in question, which would constitute another nontaxable source of funds. We affirm.

I.

Prior to trial, on June 19,1975, the Internal Revenue Service (IRS) held a conference, attended by appellant, Brickert, and appellant’s attorney, Randall, to discuss appellant’s tax liability. An IRS representative, Bouker,…