Showing posts with label Tax Evasion. Show all posts
Showing posts with label Tax Evasion. Show all posts

24 October 2018

Eleven years and a fine for tax dodger Capone

On this date in 1931...

Federal Judge James H. Wilkerson on October 24, 1931, sentenced Chicago Outfit leader Al Capone to eleven years in prison and a $50,000 fine for evading income taxes. Capone also needed to pay $215,000 in back taxes plus interest.

Chicago Tribune

One week earlier, a jury convicted Capone on five tax counts. Capone was found guilty of the felonies of evading taxes for the years 1925, 1926 and 1927, and of the misdemeanors of failing to file income tax returns for 1928 and 1920. The jury did not convict on counts relating to tax evasion in the years 1924, 1928 and 1929.

At trial
Judge Wilkerson sentenced him to five years in federal prison on each of the felony convictions, with two of those sentences to run concurrently. He added a year in Cook County Jail for the two misdemeanors. Capone had already been locked up in county jail for contempt, after it was shown that he pretended to be ill in order to avoid appearing before a federal grand jury.

As he returned to county jail after sentencing, Capone was in an angry mood and threatened a reporter who tried to photograph him: "I'll knock your block off." Later he pleaded with newsmen to put their cameras away. "Think of my family," he said.

Capone was refused release on bail pending the legal appeals in his tax evasion case. He brought his request for bail to the U.S. Circuit Court of Appeals but that was denied on October 27. When his appeals were exhausted, with the Circuit Court's affirmation of his sentence in February 1932 and the U.S. Supreme Court's early May 1932 refusal to review his case, Capone was moved from Cook County Jail to Atlanta Federal Penitentiary. His ten-year federal prison sentence would allow his release on good behavior in seven and a half years.

Capone's term in Atlanta was relatively brief. In the summer of 1934, he was transfered to Alcatraz Prison on the West Coast. His health deterioriated at Alcatraz. When he was freed from custody in November 1939, he was immediately placed in a Baltimore hospital for treatment of paresis. His final years were spent in retirement at Palm Island, Miami Beach, Florida. He died January 25, 1947.

Sources:
  • "Capone gets writ; sent back to jail until appeal made," Bloomington IL Pantagraph, Oct. 27, 1931, p. 1.
  • "Capone in jail; prison next," Chicago Daily Tribune, Oct. 25, 1931, p. 1.
  • "Capone loses his last chance to keep out of pen," Ogden UT Standard Examiner, May 2, 1932, p. 1.
  • "FBI History: Famous Cases: Al Capone," Federal Bureau of Investigation, accessed June 27, 2010. https://www.fbi.gov/history/famous-cases/al-capone (previously: http://www.fbi.gov/libref/historic/famcases/capone/capone.htm).
  • "Prison tonight for Capone," Chicago Daily Tribune, May 3, 1932, p. 1.
  • Certificate of Death, Florida State Board of Health.
  • Florida State Census of 1945.
  • Kinsley, Philip, "U.S. jury convicts Capone," Chicago Daily Tribune, Oct. 18, 1931, p. 1.
  • Pickard, Edward W., "Chronology of the year 1931," Woodstock IL Daily Sentinel, Dec. 30, 1931, p. 3, and DeKalb IL Daily Chronicle, Dec. 31, 1931, p. 6.
  • Prisoner Index, Alcatraz Federal Penitentiary.
  • United States Census of 1940, Florida, Dade County, Miami Beach, Enumeration District 12-42A.
See also:

09 December 2016

Death of former Boardwalk boss

On this date in 1968, eighty-five-year-old Enoch "Nucky" Johnson died of natural causes at the Atlantic County Convalescent Home in New Jersey. Johnson had been the Prohibition Era political boss of Atlantic City. 

During his reign, the city was a friendly location for organized criminals. Johnson's relationships with the underworld were brought to light during a feud with the New York Evening Journal newspaper in the early 1930s. His control over Atlantic City ended with his successful 1941 prosecution on federal tax evasion charges. Johnson lived a quiet life after his release from prison in 1945.

Asbury Park NJ Press, Dec. 10, 1968. Camden NJ Courier Post, Dec. 10, 1968.

16 November 2016

Out of prison, into hospital

On this date in 1939, infamous Chicago gangland chief Al Capone was freed from prison and immediately taken to Union Memorial Hospital in Baltimore to be treated for paresis.

A brother of Capone served as the family spokesman on the occasion. Refusing to address Capone's physical and mental health, the brother said Capone was, "in a cheerful mood and doesn't hold a grudge against anybody."

Capone had been sentenced to eleven years in prison following a tax evasion conviction. He served seven years of the sentence before being released.

Newspapers described "paresis" vaguely as a softening of the brain. They mentioned that a "malaria treatment" was planned for Capone at the hospital.

The condition was an inflammation of the brain resulting from late-stage syphilis. Its symptoms included dementia and paralysis. The malaria treatment involved infecting the patient with malaria in order to bring on a high fever. In a number of cases, the fever provided temporary relief from paresis symptoms.

Logan Ohio Daily News, Nov. 18, 1939.