Document: 360 U.S. 672 79 S.Ct. 1314 3 L.Ed.2d 1503 Horace INGRAM, L. E. Smith, Mary Law et al., Petitioners,v.UNITED STATES of America. No. 457. Argued April 30, 1959. Decided June 29, Rehearing Denied Oct. 12, 959 . See 80 42. Mr. Wesley R. Asinof, Atlanta, Ga., for petitioners. J. Dwight Evans, Jr., Washington, D.C., respondent. Justice STEWART delivered the opinion Court. 1 The petitioners and twenty-two others were indicted tried conspiracy to evade defeat payment federal taxes imposed on lottery operations. six convicted.1 Their convictions affirmed by Court Appeals. 259 F.2d 886. Certiorari was granted examine scope statute in context these provisions Internal Revenue Code. 358 905, 234, 227. 2 At trial it established overwhelming evidence that had engaged with numerous a closely organized large-scale operation numbers game Georgia, during years 1954 1957, period covered indictment.2 That activity is criminal offense under Georgia law.3 also intricate detail participants this enterprise had, through variety carefully planned stratagems, made every effort conceal its operation.4 Finally, showed none paid any question. There no direct show knew taxes. In addition count, indictment which contained two additional counts charging them substantive offenses willful failure pay special tax § 4411 Code,5 violation 7203 Code,6 register as required 4412 Code,7 7272 Code.8 took place subsequent announcement Court's decision United States v. Calamaro, 354 351, 77 1138, 1394, district judge correctly instructed jury conviction would be justified only defendants found 'writers,' 'bankers,' or have 'a proprietary interest such operation.' Two petitioners, Ingram an d Jenkins, guilty both do not question convictions, conceding sufficiency banker Jenkins enterprise. other Smith Law, relatively minor clerical functionaries at headquarters operation, they acquitted counts. 4 sum, what record presents then picture profitable gambling business conducted Atlanta over several Jenkins. He involved many participants, including Law. It laws everyone organization participated trying keep secret. liable §§ 4401 Code willfully failed them. They official charge District, so. themselves subject here involved. presented whether factual foundation sufficient support them, attempt taxes, 'the gravest against revenues.' Spies States, 317 492, 499, 63 364, 368, 87 L.Ed. 418. We hold insufficient 5 As clear. entrepreneurs vast business. clearly registration requirements Federal Government has upon operators kind Kahriger, 345 22, 73 510, 97 754. Not did fail neglect but conspired source income imposed. 6 occasion consider quantum type attempting contrasted lesser proof convict isd emeanor failing file return tax. there said: 7 'Willful passive statutory duty may constitute offense, combine positive manner means lifts degree felony. 8 'Congress define limit methods might accomplished perhaps lest so result some unexpected limitation. Nor we definition constrict Congressional provision 'in manner.' By way illustration, limitation, think affirmative inferred from conduct keeping double set books, making false entries alterations, invoices documents, destruction books records, concealment assets covering up sources income, handling one's affairs avoid records usual transactions kind, conduct, likely effect mislead conceal. If tax-evasion motive plays part out even though serve purposes crime.' page 368. 9 Spies, dealing commit it. But agreement between operate enterprise, clear record, virtually conceded conclusion their parties tne 10 case quite different one. While supports finding local law enforcement agencies, find warrant were, like purpose illegal law. Certainly nothing fact obviously within knowledge latter. 11 fundamental 18 U.S.C. 371, U.S.C.A. cannot sustained unless 'proof States.' Pereira 347 1, 74 358, 98 435. need not, course, conspirators aware criminality objective, essential ingredient reason operation. 'Without knowledge, intent exist.' Direct Sales Co. 319 703, 711, 1265, 1269, 1674. 12 '(C)onspiracy particular exist without least necessary itself.'9 accused conspiring evasion which, presuming law, committed absence willfulness. supra, Cf. Falcone, 311 205, 61 204, 85 128. 13 Indulging, course must, view most favorable Goern ment, simply discern adequate present Ingram's Jenkins' wagering liability. completely barren knowledge. shown, example, reference ever been possible liability, filed previous years. relied instead asserts, circumstantially proved requisite These circumstances intimate connection itself, cooperation conducting secretly,10 apparent profit. points decreased profits derived lottery, registration, names addresses bankers writers, internal revenue office posting stamp 26 (Supp. V) 4412, 6806(c), 6806(c). information available officials. 6107, 6107. 14 Yet actually are colorless vital issue superiors owed secrecy go This where efforts reasonably explainable terms motivation taxation. Here, provided more than conducted. A conspiracy, sure, multiple objectives, Rabinowich, 238 78, 86, 35 682, 684, 59 1211, if one one, feferal out, primary objective another crime. resulted disclosure prosecution authorities permit inference motivated if, independently, Evidence wanted evaded known could furtherance plan know 15 What said behalf unanimous relevance here: 16 exist. * Furthermore establish intent, must clear, equivocal. This, because charges piling inference, thus fashioning dragnet draw all crimes.' 1269. 17 supra. therefore, convicted crime charged having commit. To sustain make just 'dragnet crimes' warned Sales. Gebardi 287 112, 53 35, 206. Accordingly, while affirming motions acquittal should District Court, Appeals error convictions. 19 Judgment accordingly. 20 BLACK consideration case. 21 HARLAN, whom DOUGLAS BRENNAN join, concurring dissenting part. 22 constitutional validity occupational persons accepting wagers construing those provisions, however, held weight can given suggestion interpreted premise enactment "in congressional desire suppress wagering." 1143, 1394. who 'proprietary interest' taxing statutes, therefore provisions. 23 sought by-pass Calamaro simple expedient indicting connected proscribed Code, members personally relevant excise elements crime, first, due, and, second, 'willful means,' naked concealed Since lotteries unlawful State, particularly carried on, require continue operate, alone relegate status unmeaningful relic. convincingly demonstrates why does owing undertook acts purpose, whole part, aiding 24 I very considerations lead reverse equally reversal An indispensable element directly circumstantially. Here proof, sole circumstantial holds, 'certainly knowledge' tax, am loss understand how factor same time suffice latter less former shown actual before reasoning plainly me showing 25 sight lost violate statute, laws. large charged. Section provides: '(a) Wagers.—There shall wagers, defined section 4421, equal percent amount thereof. '(c) Persons tax.—Each person subchapter placed him. Each conducts pool lottery.' 68A Stat. 525, 4401. 'There $50 per year each receiving liable.' 527, 4411. 4421 includes 'wager' 'any wager profit' 'lottery' game, policy, similar types wagering.' 528, 4421. 7201 'Any attempts title thereof felony *' 851, 7201. 'If conspire act object fined imprisoned *.' 62 701. links chain convicted. Some items when raided 1957 indicative magnitude Among 2,400 scratch pads used operations, thousands coin wrappers, police alarm radio, secret code calls, high-frequency radios, fictitious automobile registrations license tags. Petitioner alleged stated 1955 'business down about' $3,500 day. (1953 Revision), 26—6502. extensive evidence, plates automobiles, evasive routes 'checkup headquarters' occasion, atemp ted bribe officers. Note fails misdemeanor 7203. 'Each district—* 4412. Secretary his delegate penalty $50.' 866, 7272. 'Developments Law—Criminal Conspiracy,' 72 Harv.L.Rev. 920, 939, cited. decisions Grunewald 353 391, 963, 931; Lutwak 344 604, 481, 593; Krulewitch 336 440, 69 716, 93 790, appear contend, prevent treating subsidiary conspiracy. Those cases life extended after conspiracy's objectives fully accomplished. '* (A) distinction done main central attained, U.S., 405, 974.

Category: 0