Evening star., 1947-10-18
Casey Begin
Jail Term as
Tax Evader
Taken to PETERSBURG
Following Surrender
To u. S. Marshall

10 U. 5. Marshall
Eugene B. Casey, wealthy
dairy farmer of Gaithersburg,
Md, today began serving the
Jail term imposed on him yester-
day for income tax evasion.
Sentenced by Federal Judge w.
Calvin Chestnut in the Baltimore
District Court, Casey, 42-year-old
millionaire, later surrendered to Col.
Richard c. ODonnell, United States
marshal. He was taken by auto
mobile last night to the Federal
reformatory at Petersburg, Va.
Judge Chestnut sentenced Casey,
who was one of President Roosevelt's
executive assistants during the war.
to pay fine of $50, ,000-$10, 900 on
each of the three counts in the
income tax evasion indictment-and
to serve six months on each count,
the sentences to run concurrently.
Concession for Cooperation.
The judge ruled, however, that
two of the concurrent six-month
periods will be stricken from the
sentence, if Casey co-operates with
the Government in determining
exactly his tax liabilities for the
years 1941, AZ and '43 and pays all
such liabilities, including interest
and penalties, as well as court costs.
The Government contends he still
owes $282,912 for taxes, penalties
and interest for the three years. He
already has paid $213,084 on the
basis of amended returns he filed
just before he was indicted.
A native of Washington, Casey
was active here as a heating and
ventilating engineer and in house
construction and he had dairy farms
in nearby Maryland. A New Dealer,
he was at one time deputy governor
of the Farm Credit Administration
and he took an active part in Pres
ident Roosevelt's attempt to purge"
Senator Tydings, Democrat, of
Maryland in the 1888 election.
He was brought to trial in Balti-
more on the tax evasion charges
last March. The jury failed to agree.
Enters No-Contest Plea.
Yesterday he appeared before
Judge Chestnut and pleaded nolo
contendere (no contest) to the same
indictment.
Casey, who made no statement
in the courtroom, heard the SEN
tence meted out to him without any
snow OF emotion. He was chewing
gum, and there was no change in
the rhythmic motion of his jaws.
But later, when he walked from
the court, he appeared detected,
and it seemed his shoulders were
more stopped than before.
The court had granted permission
for him to wait until Monday to
surrender to the marshal; but, after
comforting with his attorney, he
decided to surrender at once.
Figures Are Raised.
The testimony regarding the ad-
ditional sums the Government saws
Casey owes was presented by How
ard H. Rutan of the income tax
Office of the Internal Revenue Bu-
reau in Washington.
1t was said the recomputing of
Casey's taxes was begun after he
testified at his trial in March that
he was worth $2,50O, 600, although
1882.
Mr.. Rutan asserted that, although
Casey had at first reported an in
come of $22, 2,146 for 1941, and raised
lit to $106,602 in his amended re-
turn, the figure should have been
$195 ,296.
The figures for 1942 were given as
$50, ,230 for the first report, SLOT ,O23
In the amended return and $132 ,208
as the final figure.
$147,38S Recomputed Figure.
In 1943, according to the testi-
mony, Casey's first return showed
an income of $12,215, his amended
return an income of $124,45O and
the Governments recomputed fig
ure was $147,388.
The result, Mr.. Rutan said. was
an additional tax liability of $1O5,-
Ill, discovered by the Government
since Casey's trial, with interest on
this amount totaling $30,925 and
penalties of s146,875 applying both
to the $105,111 figure and to the
amount Casey reported in his
amended return.
Judge Chesnut, in announcing
the sentence, said "the defendant
is not in a position to plead either
ignorance or confusion" Casey, the
Judge added, "had every opportunity
to have competent persons to con-
suit for his various complex business
transactions"
Therefore, it is in the public inter-
est to impose something more than
a mere fine and suspended sentence
the judge said.
In his trial last March, Casey,
protesting Judge Chesnut's rulings
on the admissability of evidence,
cried out he was fighting not only
for "his life" but also for his "aged
mother" and five chi1drep