The Bund
In 1939, a New York tax investigation determined that Kuhn had embezzled $14,000 from the Bund. The Bund did not seek to have Kuhn prosecuted, operating on the principle "(Führerprinzip)" that the leader had absolute power. However, New York City's district attorney prosecuted him in an attempt to cripple the Bund. On December 5, 1939, Kuhn was sentenced to two and a half to five years in prison for tax evasion and embezzlement.