United States v. John H. Greer, Jr., United States of America v. Charles G. Harris

The appellants, Harris and Greer, were convicted on three counts of willfully subscribing to false income tax returns for the years 1971 through 1973 ( 26 U.S.C. § 7206 (1)), and on five counts of willfully assisting in the preparation of false corporate income.tax returns for the years 1971 through 1973 ( 26 U.S.C. § 7206 (2)).

Appellants contend that the Government’s proof was insufficient to establish that they had willfully and knowingly subscribed to, or aided in the preparation of, false income tax returns.

The false returns at issue were filed as part of an apparent attempt to cover up the receipt and diversion of funds by appellants from several Arizona restaurant businesses, including Southwest Restaurant Systems, Inc., Neptune’s East, Inc., and Sahara Caterers, Inc., which appellants owned in conjunction with another individual, one McEl-hanon. A 1971 dispute among the co-owners resulted in McElhanon’s being ousted from his positions as an officer and director of the respective corporations.

Following McElhanon’s ouster, appellants entered into a business arrangement on behalf of the restaurant corporations with the Carriage Trade Dinner Club, a promotional diners…