Rare but dancer goes to jail for failure to report income
While catching up on my reading I came across (Fairchild, US Appeals No. 14-3517 March 2016) where an exotic dancer is going to jail. She failed to claim a substantial amount of otc income on her return relating to one client. Her defense was she thought it was a gift. She was very abusive in the amount she failed to report but keep it in mind if tempted.
Re: Rare but dancer goes to jail for failure to report income
Re: Rare but dancer goes to jail for failure to report income
Re: Rare but dancer goes to jail for failure to report income
Can you copy and paste it? It says I have to be a member to read it. ugh..
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
lynn2009
This girl is dumb.
OMG $1.3 million like that wouldn't raise some flags?
Wish I could see the whole article though
Re: Rare but dancer goes to jail for failure to report income
(full article text follows.)
8th Circ. Affirms Tax Evasion Sentence For Adult Entertainer
By Vidya Kauri
Law360, New York (March 17, 2016, 10:07 PM ET) -- The Eighth Circuit on Thursday upheld a jury’s guilty verdicts against an adult entertainer accused of making false tax returns on income totaling more than $1.3 million over four years, saying that the jury was free to disregard her testimony as not credible.
Veronica Fairchild, who is serving a 33-month sentence for falsifying tax returns for 2005 through 2008, had told the appellate court in April 2015 the South Dakota federal jury didn’t have enough evidence to conclude that she willfully underreported her income.
But a three-judge panel said the jury was free to decide which parts of witness testimony it would accept or reject, conclude that information from her accountant demonstrated the falsity of her tax returns and infer intent behind her conduct based on inconsistencies in her representations to government agencies and other entities.
“Sufficient evidence exists to support the jury's finding that Fairchild knew and believed that she had underreported her income and that she willfully did so,” the panel said.
One of Fairchild’s clients testified he paid her $1.1 million for sex during the four years in question, but Fairchild said she had only given him private dances and genuinely believed that money to be gifts and not payment for a service. She said that her case arose from “confusion over the nature of the money” and that the government had failed to prove that her conduct was willful because of her good-faith belief that she was not violating tax laws.
Fairchild, who was charged in July 2013, also tried to argue that her October 2014 sentence was unreasonably long and that the trial court should have considered extenuating circumstances such as his having been sexually abused in the past and her role as a single parent to three young children.
But the Eighth Circuit finding that the lower court had indeed taken these mitigating factors into account, including the fact that she had become a guardian for a neighbor’s child, but ultimately gave more weight to the circumstances of her offense.
“The [district] court noted that Fairchild has ‘been a wreck’ ‘on the financial side of things’ as evidenced by her continued misrepresentations to banks to obtain loans,” the panel said. “Additionally, the court stated that one of its considerations ‘in deciding a sentence is what responsibility have people taken for their actions to start putting things in order’ and found that Fairchild had not yet done so.’”
The lower court had specifically noted that Fairchild’s failure to pay any federal income tax for nine years was a sign she was not making amends for her “serious” crime. Fairchild’s offense level and therefore her sentence were based on a calculation of the tax loss above $200,000, the appeals court said.
Fairchild and her husband, who struggled with bipolar disorder and died by suicide in late 2013, came under scrutiny in 2009 when the IRS began investigating them for not having filed taxes since 2004. An IRS agent found in bank records that more than $1.3 million in cash and checks had been deposited into Fairchild’s accounts since 2005.
Unaware of the investigation, the couple filed joint returns for all four years in 2010 when they needed completed tax returns to get a real estate loan in Iowa, and reported total income on these returns of a little more than $500,000, according to court records.
While Fairchild had initially told her accountant that all of the money she had earned in 2005 was income, a claim that resulted in her owing more than $56,000 in taxes, she later told the accountant that some of the money was a gift, thereby giving her a net tax refund of almost $2,000. She claimed a significant portion of her income in the other years as gifts as well, saying that it was “unclear” what the nature of the money she received from two key clients was.
The appeals panel noted that the day Fairchild and her husband first realized how much they owed on their 2005 return, instead of mailing their return as advised by their accountant, the couple went to a credit union and borrowed more than $100,000 to buy two Cadillac Escalades and a boat.
Judges William J. Riley, Lavenski R. Smith and Bobby E. Shepherd sat on the panel for the Eighth Circuit.
Fairchild is representing herself with assistance from Neil Fulton, Timothy J. Langley and Molly Quinn of the Federal Public Defender’s Office.
The government is represented by Jeffrey C. Clapper of the U.S. Department of Justice.
The case is U.S. v. Veronica J. Fairchild, case number 14-3517, in the U.S. Court of Appeals for the Eighth Circuit.
--Editing by Brian Baresch.
© 2016, Portfolio Media, Inc.
Law360 is a subscription based, legal news service operated by the Portfolio Media company, a subsidiary of LexisNexis.
Re: Rare but dancer goes to jail for failure to report income
So she made 325,000 per year??
Re: Rare but dancer goes to jail for failure to report income
That is unfortunate but, was totally preventable.. Why the hell would you even want to mess with something that could tear your financial future apart? /:O
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
Dominic.2
The appeals panel noted that the day Fairchild and her husband first realized how much they owed on their 2005 return, instead of mailing their return as advised by their accountant, the couple went to a credit union and borrowed more than $100,000 to buy two Cadillac Escalades and a boat.
That's what we call handling your problems well...
Re: Rare but dancer goes to jail for failure to report income
a VIP reg who is a tax attorney points out that this matter was first brought to IRS attention in 2009. This pre-dates most of the recent 'suspicious activity' reporting requirements on banks - which look for repeating patterns of cash deposits that add up to significant totals, and also pre-dates most of the state reductions in mandatory 'cash transaction' report generation - which are now reduced to $3-4-5,000 in high tax rate states.
Most likely the original IRS attention was brought to bear because state motor vehicle, property deed, title registration agencies, etc. reported the expensive car and boat purchases - along with loan and monthly payment details.
Re: Rare but dancer goes to jail for failure to report income
I read about her before. She actually owns a stripclub in Iowa. I've never met her. But i know of her. And her sugar daddy ratted on her. I believe that she is dancing again and still owns the strip club in Iowa.
Re: Rare but dancer goes to jail for failure to report income
That's what happens when dumb people get greedy.
How the hell she make 7 figures, leave a paper trail, not expect IRS to see that sh*t like shes invisible or something, and then go against the advice of her financial professionals. Should have know her greed would catch up to her.
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
Nyla19
I read about her before. She actually owns a stripclub in Iowa. I've never met her. But i know of her. And her sugar daddy ratted on her. I believe that she is dancing again and still owns the strip club in Iowa.
She's probably in prison, unless she was given an early release.
Re: Rare but dancer goes to jail for failure to report income
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
eagle2
She's probably in prison, unless she was given an early release.
No! She's not in prison at this moment. She's actually working at a stripclub. I know for a fact.
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
Nyla19
No! She's not in prison at this moment. She's actually working at a stripclub. I know that as a fact.
**. I'm sure many would disagree with me but I don't believe we should hate on her. We're in the same biz!!! I'm sorry to piss anyone off.
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
Nyla19
No! She's not in prison at this moment. She's actually working at a stripclub. I know for a fact.
Maybe she was released early.
Re: Rare but dancer goes to jail for failure to report income
Quote:
Originally Posted by
eagle2
Maybe she was released early.
Yes, possibly! Like I said, I don't know her but I know that she strips in other clubs aside from the one she owns. And I've seen her on the roster. I kinda feel badly for her because her husband committed suicide. And I don't think that she did the right thing by not paying her taxes. But many of us on here are smarter that the typical stripper. And maybe she didn't know any better. Plus, I think that its BS that her sugar daddie ratted on her. I think that's the part that makes me supportive of her.
Re: Rare but dancer goes to jail for failure to report income
And I think according to the article, a payment plan is being worked out for her? And maybe she's only getting probation or home arrest since her husband committed suicide. And now theres only one parent.