bad news in the fight against income tax
Girlfriend of Anti-Tax Author Sentenced
Thursday February 23, 2006 10:16 PM
By KEN RITTER
Associated Press Writer
LAS VEGAS (AP) - A former girlfriend of anti-tax crusader Irwin Schiff was sentenced Thursday to more than five years in federal prison for advising people that there was no federal law requiring them to pay income tax.
Cynthia Neun, 52, also was ordered to pay $1.1 million in restitution and faces years' worth of back taxes, interest and penalties.
Prosecutors cast Neun as a key administrator of Schiff's Las Vegas business, Freedom Books, which advised clients that they did not have to pay federal income taxes and that the Internal Revenue Service has no legal authority to collect them. Prosecutors estimate that the fraud cost the government as much as $57 million since 1999.
``There is more evidence of the validity of the tooth fairy than there is of this tax theory,'' U.S. District Court Judge Kent Dawson said.
Neun was found guilty in October of 15 charges, including tax evasion and aid in filing fraudulent tax returns. Appeals of the conviction and 68-month sentence were planned, defense lawyer Michael Cristalli said.
Dawson was due to sentence Schiff on Friday on 13 conspiracy, tax evasion and tax fraud charges. He faces up to 43 years in prison.
A third co-defendant, Lawrence Cohen, 65, was sentenced Feb. 3 to 33 months in prison on one conviction for aid in filing fraudulent tax returns.
Girlfriend of anti-tax author sentenced to five years
LAS VEGAS An ex-girlfriend of a notorious anti-tax crusader has been sentenced to more than five years in federal prison for telling people there is no federal law requiring them to pay income tax.
Cynthia Neun (noon) is also ordered to pay more than a (m) million dollars in restitution, and back taxes, interest and penalties going back years.
Prosecutors say Neun helped run a Las Vegas business in which Irwin Schiff advised clients they didn't have to pay income taxes and that the I-R-S has no legal authority to collect them. Schiff could be jailed for up to 43 years when he's sentenced tomorrow.
Prosecutors say the fraud has cost the government as much as 57 (m) million dollars over seven years.
LAS VEGAS The former girlfriend of anti-income tax crusader and author Irwin Schiff is going to federal prison for five years and eight months for advising people that no law required them to file federal income tax.
52-year-old Cynthia Neun ("Noon") never testified at trial -- and didn't address the judge who used sentencing today to deride Schiff's anti-tax theories as a bigger fiction than the tooth fairy.
Neun's lawyer says she'll appeal.
Neun also got three years probation and was ordered to pay more than a million dollars in restitution and several years of back taxes, interest and penalties.
Neun was found guilty of 15 charges including conspiracy, tax evasion, aiding in the filing of fraudulent tax returns, Social Security disability fraud and theft of government property.
She's been in custody since she was convicted October 24th -- and will be sent to a federal prison medical facility in Fort Worth, Texas.
Schiff -- who turns 78 today -- is due for sentencing tomorrow on his conviction on tax fraud charges that could get him decades behind bars.