United States v. Bernard J. Atkinson

Bernard J. Atkinson appeals his conviction for personal income tax evasion and corporate income tax fraud under 26 U.S.C. §§ 7201 and 7206(1). At the request of the panel originally assigned this case, we granted en banc consideration of the appropriate standard of review for Atkinson’s claim that his conviction is supported by insufficient evidence. 981 F.2d 1109 (9th Cir.1992).

I

Atkinson was the president and the sole shareholder of Compact Equipment Company (“Compact”), which specialized in the conversion of vans to recreational vehicles. In 1984, Atkinson sold his personal residence in Claremont, California, and purchased a home near Lake Tahoe. He demolished the lot’s existing structure and began construction of a custom-designed, 4000-square-foot residence on the site. During the construction process, Atkinson utilized Compact funds to pay for architect’s fees, materials, and labor. The supervisor of the project and all day laborers were placed on Compact’s payroll and also received health benefits from Compact. Purchases of some building materials were invoiced directly to Compact.

Upon completion of the $1.7 million home, Compact had disbursed approximately $550,000 in…