United States v. Jay R. Bishop, United States of America v. Gene R. Cardenaz

Jay Bishop and Gene Cardenaz (collectively “appellants”) appeal their convictions and sentences for one count of conspiring to defraud the Internal Revenue Service (IRS), in violation of 18 U.S.C. § 371 , and two counts each of attempted income tax evasion, in violation of 26 U.S.C. § 7201 . We affirm.

The main issue at trial, and on appeal, is whether the appellants’ conduct was willful. Each argues (1) that the district court erred in relying on an objective standard for good faith in determining willfulness, and (2) that the district court improperly excluded as hearsay proffered testimony about willfulness.

Bishop also claims that his waiver of a jury trial was invalid. Cardenaz claims that the district court erred in denying his untimely Faretta motion to complete the trial as his own counsel, and in calculating the tax loss for sentencing purposes.

FACTUAL BACKGROUND

Bishop and Cardenaz, along with Robin McPherson (collectively “defendants”), who is not a party to this appeal, were employed as managers by American Wireless Cable Systems. In 1992, American Wireless sold its marketing business to defendants for $4,275,000. Defendants, as equal shareholders, formed an…