Criminal Charges
Wesley Snipes has been indicted in Federal Court on eight criminal counts (2 felonies, 6 misdemeanors). Eddie Ray Kahn and Douglas Rosile have been indicted on two felony counts.
Count 1 – Allegedly conspiring with Eddie Ray Kahn and Douglas Rosile to defraud the US Government. This felony count has a maximum prison sentence of five years.
18 § 371. Conspiracy to commit offense or to defraud United States
If two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both.
Count 2 – Allegedly filing a false, fictitious, or fraudulent claim. In 2001, Mr. Snipes, with the assistance of Eddie Ray Kahn and Douglas Rosile, attempted to file an amended tax return for the 1997 tax year. The refund requested was for $7,360,755 which represented all of the federal taxes paid by Mr. Snipes for 1997. This felony count has a maximum sentence of five years.
18 § 287. False, fictitious or fraudulent claims
Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine in the amount provided in this title.
Counts 3 through 8 – Allegedly failing to file any federal income tax returns for the 1999, 2000, 2001, 2002, 2003, and 2004 tax years. These six misdemeanor counts have a maximum sentence of one year per count.
§ 7203. Willful failure to file return, supply information, or pay tax
Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.