Capone tax evasion trial

Before the trial, Mattingly tried to sell the government on a plan in which Al would admit to evading income taxes, make good on them, pay a fine and receive no jail time in return. Mattingly also got Capone to agree to an interview with Treasury officials. But during the interviews, Capone deferred to his attorney when asked about his income.

The letter backfired. The feds would effectively use it in court to argue that Capone admitted to earning untaxed income while a member of a criminal organization. Members of the jury empaneled on October 6 included grocers, painters, a pattern maker, hardware merchant, insurance agent, stationary engineer, farmer and clerk. Wilkinson approved the panel anyway. The formal proceedings began on October 7 with an opening statement by Assistant U.

Attorney Dwight Green about the two indictments. I was slugged over one ear. My nose was broken with a blackjack. Questioned by Assistant U. That money from the Hawthorne flowed to a second club four doors away, called The Subway, Shumway said.

The books showed Capone frequently received cash. Several tax bureau workers described the letter as proof that Capone for years avoided paying what he owed the federal government.

The judge, hearing arguments with the jury out of the courtroom, ruled the tax officials had made it clear they could introduce the letter and statements during the criminal trial. The decision rocked the defense. On October 9, the jury heard Assistant U. Clawson further read damning assertions that Capone made during his conferences with government tax employees. Jeff Burbank is content development specialist for The Mob Museum. The trial was highly publicized. Hollywood celebrity Edward G. Robinson, who had portrayed a Capone-like character in the movie "Little Caesar," attended 1 day to observe the gangster role model, Capone.

The names, addresses, and occupations of the 12 jurors who decided the case and signed this verdict were printed in Chicago newspapers. The presiding judge in the case, though, was determined to put Capone away for longer, so he disallowed the lenient plea bargain. Fortunately for the prosecution, testimony from numerous witnesses showed that Capone was the de facto owner of a highly profitable smoke shop.

Witnesses said that Capone had been earning large sums of money from the shop for many years. Considered as a whole, these factors created enough circumstantial evidence to demonstrate that Capone was in fact guilty of tax evasion. He was also ordered to pay all court costs.

The penalties were the largest ever for a tax evasion case up to that time. Capone finished his sentence for tax evasion in early January, and was then sent to another correctional institution to serve an additional 6 months for contempt of court. He was formally paroled and finally left prison on November 16, , having served a bit more than half of his year sentence. Once out of prison, Capone relocated to Florida where he joined his wife and child.

He remained in Florida until his death in The Capone case is fascinating for a variety of reasons, but one of the more intriguing aspects of the Al Capone tax evasion case is the fact that Capone was able to avoid capture for as long as he did. What this case also demonstrates is that, no matter how much you try to avoid your tax obligations, Uncle Sam works overtime to collect his payment. Nowadays, most IRS tax evasion cases arise out of simple civil audits.

According to John D. Image credit: Nicolas Raymond. As we discussed in one of our earlier blog posts, Al Capone was a notorious gangster who rose to power and influence in s Chicago. Capone became the head […]. You must be logged in to post a comment.