Evening star., 1952-07-31
.Prosise Fined
$4,000 in Tax
Evasion Case
Former Banker Put
On 3-Yeur Probation
Because of Health

Alan B. Prosise, former vice
president and treasurer of the
Arlington Trust Co., yesterday
was fined $4,000 and placed on
probation for three years on
charges of income tax evasion.
The sentence was imposed in
Federal Court, Alexandria, by
Judge Sterling Hutcheson, who
said the condition of the 57-year-
old defendants health Influenced
his decision. ..
Judge Hutcheson said the case
looked like well-planned scheme
of evading taxes. United States
Attorney A. Carter Whitehead
suggested a maximum sentence of
five years, but said it might be
necessary to suspend execution Of
the sentence because of Prosise's
health.
Testimony From Doctors.
The court heard testimony
from one doctor and received
medical reports from others which
indicated that Imprisonment
might cause Prosise to suffer q
fatal heart attack.
Prosise remained out of the
courtroom throughout yesterdays
hearing because of his physical
condition. He appeared in court
only for the imposition of sem
tence.
Prosise specifically was sem
fenced for income tax evasion in
1916. The Government said he re-
ported $18.657 that year while his
income actually was $110,360. This
resulted in an underpayment Of
over $65, 1000, the Government said.
Prosise did not contest the
charge.
He originally was charged also
with evading income taxes in 1914.
1945 and 1947. The Government
said he underestimated his income
from $4,000 to $59, 900 during those
three years.
Disagreement on Figures.
Attorney Frank Ball, who rep
resented Prosise, said there was
disagreement over the figures. Bert
B. Rand, tax attorney, testified for
the defense that the underestimate
totaled only $4,000.
Paul j. Hansen, special agent
for the Internal Revenue. told
the court that Prosise made his
money several ways while he was
an officer of the Arlington Trust
Co. One source of his income.
said Mr.. Hansen. was in commits
sions or fees for arranging loans
through the trust company. He
, described these instances.
y One borrower paid $4,000 COM
: mission to Prosise for a loan. The
/ commission never showed up in
!, the banks income account.
A partnership paid $1,250 to
Prosise for negotiating $685.
loan and paid $3.50 to him on
/ another occasion for renewing the
!, loan.
In May. l946, Prosise arranged
a $132.000 loan. The borrowers
, account was credited only with
$122. 900 and the borrower claimed
, he gave the other $4,000 to
!. ProSise for arranging the loan.
+. Commissions Not Reported.
Mr.. Hansen said none of these
commissions were reported on
Prosise's income tax returns.
The Internal Revenue agent
said another source of Prosise's
income was in real estate trans
!. actions. He, testified that Prosise
on one occasion bought and re-
sold some property in another
mans name, and the other man
reported the profit on his income
tax return. Mr.. Hansen said
Prosise was in a higher income
tax bracket and would have had
to pay higher tax on the profit.
IAAC ool0 lOOAoC 1ldu
the other man for paying the tax.
/ Bought Coal Firm.
! Mr.. Hansen said another source
was the Atlantic Smokeless Coal
Co.. at ASco., w. Va, which
ProSiSe and four other Arlington
men bought in l945. Mr.. Hansen
said coal sale operator had 4
lcontract to sell all the coal at an
Is per cent commission. but
itactually received only 4 per cent
while Prosise and the other four
major stockholders split the other
4 per cent.
I Prosise was an officer at the
Arlington Trust Co. for % years
before his financial difficulties led
to his resignation In l948. His
home is at I'LL North Jefferson
street. Arlington.
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