Opinion ID: 298598
Heading Depth: 1
Heading Rank: 5

Heading: Unauthorized Pyramiding of Penalties

Text: Louis Cramer was sentenced as follows: 42 Count 1 (willful evasion for 1962): suspended sentence with five years probation; 43 Count 2 (willful evasion for 1963): six months imprisonment; 44 Count 3 (willful assistance in the preparation of false returns for 1962): suspended sentence with five years probation to run concurrently with probation sentence imposed under Count 1, and a $5,000 fine; 45 Count 4 (willful assistance in the preparation of false returns for 1963): six months imprisonment, to run concurrently with sentence imposed under Count 2, and a $5,000 fine. 46 The sentences of probation are not to commence until Louis Cramer is released from confinement. Minnie Cramer received suspended sentences on all four counts with five years probation, the sentences of probation to run concurrently, and she was fined $5,000 each on Counts 3 and 4. 47 Appellants contend that the sentences and fines constituted an unauthorized pyramiding of penalties. United States v. White, supra, 417 F.2d at 93. In White, the appellants were convicted on four counts of willful tax evasion for four separate years under 26 U.S.C. § 7201 and on four counts of making and subscribing a false return, 26 U.S.C. § 7206(1) for the same years. We noted that 48 Section 7206(1), although it charges an offense separate and distinct in itself, is only one part in a comprehensive statutory scheme to prohibit and punish fraud occurring in the assessment and collection of taxes by the government. Section 7201 is the inclusive section, prohibiting all attempts to evade or defeat any tax in any manner . . . . There follows a series of sections prohibiting specific methods of fraud in the collection and payment of taxes, all of which are separately punishable standing alone . . . . Among these are . . . § 7206 . . . . Thus the perjury offenses charged under § 7206 may separately form the basis for an indictment; but where proof of wilfully attempted evasion under § 7201 also proves, as an incident to the wilful evasion, the preparing and subscribing of a fraudulent return, the specific form of fraudulent conduct merges into the inclusive fraud charged under § 7201. To cumulate penalties beyond the maximum authorized by § 7201 is, therefore, improper under these circumstances . . . . 49 417 F.2d at 93-94. 50 Assuming arguendo that the charges of willfully assisting in the preparation of false partnership returns, 26 U.S.C. § 7206(2) (Counts 3 and 4), are lesser offenses included within § 7201 (Counts 1 and 2), the sentences and fines imposed do not violate the principle of White. Since the Cramers were found guilty of two counts of willful tax evasion, 26 U.S.C. § 7201, they could have received maximum prison terms of five years and fines of $10,000 for each of Counts 1 and 2. When the sentences actually imposed under the companion counts for each year (Counts 1 and 3 relating to 1962, and Counts 2 and 4 relating to 1963) are considered together, it becomes clear that there was no cumulation beyond the maximum. Although Louis Cramer's probation sentences are not to commence until his release from confinement, this is perfectly proper since there is no bar to consecutive sentencing on convictions of independent violations of § 7201. As to Minnie Cramer, since she received four concurrent suspended sentences of five years and a total fine of $10,000, the claim of cumulation beyond the maximum permitted by § 7201 is frivolous. 51 Affirmed.