United States v. Kenneth E. Ford

Ford appeals from his sentence imposed after he pleaded guilty to tax evasion in violation of 26 U.S.C. § 7201 and filing a false federal income tax return in violation of 26 U.S.C. § 7206 (1). The district court exercised jurisdiction under 18 U.S.C. § 3231 . We have jurisdiction over this timely appeal pursuant to 28 U.S.C. § 1291 and 18 U.S.C. § 3742 (a). We affirm in part, reverse in part, vacate in part, and remand for resentencing.

I

Ford, an American citizen, established a network of Canadian and American companies (the Companies). He represented that they conducted legitimate research and development projects in order to take advantage of Canada’s Scientific Research Tax Credit Program (Program). The Program, now repealed, was intended to stimulate Canadian research and development by offering attractive tax benefits to investors in research companies. A company engaged in research and development seeking to qualify under the Program made a “designation” to the Canadian government and filed an informational return describing the intended research project, thereby incurring a tax liability equal to 50 percent of the stated cost of the project. By making qualified research…