Opinion ID: 734910
Heading Depth: 1
Heading Rank: 4

Heading: sufficiency of the evidence

Text: 13 Appellant argues that there was no proof of the requisite intent for each of the crimes of which he was convicted. We address each crime in turn.
14 Conspiring to defraud the United States in violation of 18 U.S.C. § 371 requires the wrongs to be done by deceit, craft, trickery, or dishonesty. U.S. v. Caldwell, 989 F.2d 1056, 1058 (9th Cir.1993). 15 Here, there was evidence that appellant maintained two sets of books in order to hide cash transactions; paid portions of wages with checks in order to appear legitimate; structured cash transactions to avoid Currency Transaction Reports; and had corporate checks endorsed with false names. There was sufficient evidence for a jury to find beyond a reasonable doubt that defendant acted with deceit, craft, trickery, or dishonesty. 16
17 Filing a false tax return, proscribed by 26 U.S.C. § 7206(1), requires that the defendant falsely subscribed to the return, statement, or other document willfully, with the specific intent to violate the law. U.S. v. Marabelles, 724 F.2d 1374, 1380 (9th Cir.1984) (citation omitted). Because direct evidence of specific wrongful intent is rarely available, willfulness may be inferred by the trier of fact from all the facts and circumstances. Id. at 1379. There need not be evidence rising to the level of defendant's intent to evade taxes, so long as there is evidence sufficient to infer an intent to violate the law by underreporting. Id. at 1380. 18 Here, there was evidence that, on several occasions, appellant told witnesses that he paid cash wages to avoid taxes. Moreover, he kept two sets of books and destroyed relevant documents after he learned of the pending IRS investigation. Thus, there was sufficient evidence to infer an intent to violate the law. See Id. 19
20 Here, the government must prove defendants acted with specific intent to defraud the government in the enforcement of its tax laws. U.S. v. Salerno, 902 F.2d 1429, 1432 (9th Cir.1990) (citations omitted). Knowledge that one's action will result in a false return, coupled with motive to avoid the payment of taxes, or a benefit inuring to the defendant is sufficient. See Id. at 1433 (summarizing cases upheld under § 7206(2)). 21 Here, in addition to the evidence discussed above, there was evidence that appellant knew that paying employees in cash would result in their false reporting of taxes, and that appellant would benefit from such underreporting. This evidence is sufficient for a jury to find intent to defraud the government in enforcement of its tax laws.