Evening star., 1938-04-04

The three Warrirg brothers, tog2thc.
with Gordon L. R. Sadur, head of a
tax-accounting firm. and his brother
in-law and employe. Henry L. Sherr,
were indicted today by the District
grand jury on charges of conspiracy
to defraud the Government of income
taxes from profits on the numbers
game.
Money allegedly given persons un-
known to protect the business from
prosecution under the gambling laws is
listed in the indictment as one of the
Items on which taxes were evaded.
Emmitt r. Warning was described
as founder of numbers business which
amassed net profit of more than
S237000 in three years. His brothers.
Leo Pau! and Charles Richard tRaes)
Warning, at first wee employed by
Enmitt. the Indictment said. and later
were made equal partners in the gam
bling enterprise, from which. according
to the Government. th~, reported for
income tax ret profit OF only about
$4,000 during tho ti,rre years.
Conspiracy Charged.
Concerning the alleged protection
money. the indictment said it was part
OF the conspiracy to conceal under tax
exempt entries in the books of the
numbers business payments Of large
sums to persons unknown to this
grand jury to obtain immunity from
prosecution for violations of the laws
OF the District of Columbia prohibiting
gambling"
The sums assertedly spent for this
immunity were not revealed But
the indictment declared these alleged
expenditures were not proper items
of deductions and thus formed part
OF plot to evade taxes.
The grand jury, after hearing evi-
dence in the case last week. returned
the 28-paec indictment to jas zee
Jesse c. Adkins thi> morniYe. The
maximum penalty for con-piracy to
evade income taxes is two years.
Less than an hour after the indict-
ment was returned, Emmitt and Leo
Warning appeared at the courthouse
with their attorney, Harry T. Whelan
and posted bonds OF $4,000 each.
The two accountants. Sadur and
Sheer, also arrived promptly and put
up their bonds, which were fxed at
$2.5O0 each.
First the four defendants went to
the office of Capt. George M. Little
at police headquarters and we're
booked
What is the charge?" Enmitt
Warning was asked by the booking
clerk.
4 don't know the reputed head
OF the numbers syndicate replied:
Stealing from the Government, I
think
An attache Of the district attor-
ney's office then cited the number OF
the statute which the brothers were
charged with violating.
Emmitt anG Leo chatted uncon-
cernedly with policemen while these
formalities were completed and then
crossed the street to post bond with
the clerk of the Criminal Court.
None of the defendants would dis
cuss the charges against them. nor
did their attorneys care to issue state
ments at this time
The Warnings are charged with de-
frauding the Government of taxes
totaling s28.24e31.
Sadur is head of Said &, Co.. with
Offices in the Investment Building.
He is certified public accountant and
has been admitted to practice in tax
matters before the Treasury Depart
rnent since 1922
The Indictment charged that Sadur
advised. counseled and represented"
the Warnings on their income taxes
for each of the three years covered in
the alleged conspiracy-1934, 1885
and 1896
Sherr Accused as Aide.
Sherr, employed in Sadur's Office,
"aided and assisted" in the asserted
tax evasions, the bill alleged.
During one year-1935-the Warning
brothers, according to the indictment
falsely represented themselves as
commission brokers" and reported to
the Internal Revenue Bureau in.
dividual net incomes of $1,86884.
That year, the Indictment charged
(see NUMBERS, Page A-3)