United States v. Augustine A. Gallo
Opinion
Opinion
Price, J.
The Defendant/Appellant Gallo was convicted of four counts of attempting to evade or defeat wagering excise taxes ( 26 U.S.C. § 7201 ), and one count of failure to file return and pay wagering occupational tax ( 26 U.S.C. § 7203 ).
Defendant became the object of an intensive investigation by the Criminal Investigation Division of the Internal Revenue Service (IRS) in October, 1978. Although he was not duly licensed as such in the State of Nevada, Gallo was suspected of bookmaking and failing to comply with the Federal registration requirements and to pay the taxes imposed upon such activity by the United States government.
Investigation of Gallo commenced on approximately October 1, 1978, and continued through the early part of December, 1978. Investigation not only consisted of personal surveillance of Gallo by various agents of the IRS, but also undercover agents were utilized to make direct contact with Gallo and to actually place bets with Gallo. Further, a search of IRS records failed to indicate that Gallo had ever filed a formal Form 11 — C (Special Tax Return and Application for Registry — -Wager) for the period July 1, 1977 to December 8, 1978.