Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-17
u. S. ACTS TO SEIZE
PITTS PROPERTY TO
| RECOVER ON TAXES
Revenue Agents Move to Col.
Iect $4,000, 00O-Seek to
Take Furs and Jewels.
LIEN FILED ON $50O,0OO
VILLA IN PALM BEACH
Action Started in Court Also In.
wolves Holdings in D. C. and
Four Other States.

Striking simultaneously in five States
and the District of Columbia, agents
OF the Internal Revenue Bureau moved
today to seize all available property Of
G. Bryan Pitts and his wife, Mrs.
Gladys T. Pitts, in an effort to COL
lect more than $4,000, 900 in alleged UNI
paid income taxes.
Asserting that it is entitled to the
taxes for the years 1925, 1927, 1925.
1880 and 1881 from Pitts and his wife.
the Governments agents went in the
courts today and filed liens on all the
property owned by the couple in the
District, Maryland, Wisconsin, New
York, Delaware and Florida,
Wnlie Pitts, convicted Of q conspiracy
TO embezzle funds of the F. H. Smith
Co., while serving as chairman of its
board, sat in the District jail, FloriM
agents filed lien on AL Lado Del Mar.
his beautiful 100000 villa by the
sea" at Palm Beach. It was this costly
nome which the Department of Justice
charged had been purchased in part
Co.
Washington agents, it was under
stood, are seeking to seize the expensive
furS and jewelry of Mrs. Pitts, who Is
living at one of the city's fashionable
hotels.
Millions in Bonds Sought.
The agents are also trying to locats
several millions dollars worth Of foreign
government bonds which Pitts has been
accused OF purchasing with q view to
leaving this country.
The specific nature Of the property
sought In Wisconsin, New York, Mary
land and Delaware was not disclosed.
but 1t Is understood to include real es-
tate and securities. During his recent
trial In District Supreme Court Pitts
test1ned that he was the owner of a
country place. in Montgomery County.
The internal revenue agents have
been working under cover for several
months in their efforts to fix the amount
OF the tax claimed and to locate prop
ertv OF the couple upon which they
could levy.
The Government received its first In
timation that something might. be wrong
with Pitts income tax returns during
the trial of Pitts and two associates OF,
the MISUNDERSTANDING charges.
At that trial the Department Of Justice
introduced evidence designed to show
tnat Pitts income tax returns were not
all commensurate with his various bank
accounts. The prosecution was attempt
ing to show that he had deposited more
money than he could have earned, seek
ing by this means to support their claim
that 1t had been embezzled.
Internal revenue agents followed up
this testimony. It was SHOWN at the
time that several tax agents were pres
ent In the court room taking shorthand
notes. -,
These agents followed with particular
interest Pitts own story Of how he
spent many thousands of dollars on
his wife's jewels, fllrs, automobiles, etc.
His own testimony showed that in some
years his income tax was In excess Of
100000.
In connection with its action today,
the Internal Revenue Bureau issued the
following statement:
Liens Filed In Five States.
"By virtue of liens filed in the Dis
trict of Columbia, Maryland, Wisconsin,
New York, Delaware and Florida, which
are public records, the Bureau Of In
ternal Revenue, acting through the coll
lectors In the States named, took steps
to collect income taxes for the years
1926, 1927, 1928, 1880 and 1881 from
wife.
1.-THE liens filed cover taxes for the
years 1926 to 1929 aggregating the sum
Of $1,573 ,60o82. while the liens for the
current years of 1880 and 1881, amount
to total Of 46,852.20.
Upon the filing of liens or the issu-
ance Of warrants, notices of liens or
levies under the warrants may be served
against any individual or corporation
supposed to have any assets Of a tax
payer.
action on the current years 1880
and 1881, was taken under section lat
OF the internal revenue act Of 1928"
Declare Period Terminated.
Under this section, the internal
revenue commissioner, if he finds that
a taxpayer designs quickly to depart
from the United States or to remove
his property therefrom, or to conceal
his property in any way to hinder the
collection of taxes" shall declare the
taxable period for the taxpayer i'm
mediately terminated and shall pro-
coed against him for the collection of
the taxes claimed.
It was understood that Mrs. Pitts
was named in the proceedings because
she and her husband filed joint tax
returns.
The internal revenue agents refused
to divulge what, II any, further action
they contemplate taking against Mr.
and Mrs. Pitts in connection with the
alleged OSIduIt III tdX payments
Their action today, however, revived
discussion of suit for 5000 filed some
time ago against Pitts by his former
bodyguard, Anthony Senes. In this suit
Senes claimed the money for services
rendered Pitts in securing certain
attachments of income tax payments"
In the District Supreme Court James
L. TAFT, collector Of internal revenue
at Baltimore, filed tax liens totaling
more than 81, 500, 900 against Pitts and
Mrs. Pitts. No specifiS property Is
named in the liens.
Under the law, the filing Of the liens
are Immediately entered as judgments
on the courts docket.