Skip to main content

This Day in Legal History--October 17th

“There is always someone tougher than you are.” –Anonymous

“… in this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin

There should be no doubt that Al Capone was a tough man. He ordered the death of Bugs Moran and his gang from the comfort of his Florida vacation home, an order that resulted in the infamous “St. Valentine’s Day Massacre” that left 7 men dead. “Scarface” Al was tough, but the Internal Revenue Service was tougher, and on this day in 1931 Al Capone was sentenced to 10 years imprisonment for tax evasion. The story of Al Capone’s reign of terror ending in charges more likely to be brought against a shady small businessman is interesting as tax stories go, and available, with primary documentation, on the IRS web site.

As one can imagine getting a conviction for anything against Al Capone, Public Enemy No. 1, would not be an easy thing. The fact that “Al Capone never had a bank account and only on one occasion could it be found where he ever endorsed a check,” financial evidence was scarce. Getting individuals to testify was also difficult as a result of “fear of personal injury” or loyalty. And finally the agents of the Treasury Dept. had to contend with Capone’s “native Italian secretiveness”. Convicting Al Capone of anything was going to be a challenge.

A key piece of evidence against Al was the testimony of three members of a citizens’ militia that raided one of his gambling joints. In the midst of the citizens’ raid Al shows up to find out what is going on. He is admitted to the premises only after telling the crowd that he is the owner and he is later heard instructing the cashier to secure the money in the cash drawer. With this evidence of his ownership of a gambling establishment the government proceeds to base a case for tax evasion. Al Capone owns a gambling establishment, he has made profits from said establishment, and has failed to pay taxes on these profits. Tax evasion!

Capone was convicted and did time in the federal prison on Alcatraz Island and was paroled in 1939. Suffering from advanced syphilis Capone died in 1947. As I said, this is interesting for a story related to taxation. What makes it more interesting that some of the original reports filed by the investigators of the Intelligence Unit of the Bureau of Internal Revenue are available on the IRS web site. To read these reports go here.

Comments

Popular posts from this blog

The Amazing, but True, Deportation Story of Carlos Marcello

Earlier this week, the University of Houston Law Center was fortunate to have as its guest Professor Daniel Kanstroom of Boston College of Law. An expert in immigration law, he is the Director of the International Human Rights Program, and he both founded and directs the Boston College Immigration and Asylum Clinic. Speaking as the guest of the Houston Journal of International Law’s annual Fall Lecture Series, Professor Kanstroom discussed issues raised in his new book, Aftermath: Deportation Law and the New American Diaspora . Professor Michael Olivas introduced Professor Kanstroom to the audience, and mentioned the fascinating tale of Carlos Marcello, which Professor Kanstroom wrote about in his chapter “The Long, Complex, and Futile Deportation Saga of Carlos Marcello,” in Immigration Stories , a collection of narratives about leading immigration law cases. My interest piqued, I read and was amazed by Kanstroom’s description of one of the most interesting figures in American le...

Texas Subsequent History Table Ceases Publication

This week, Thomson Reuters notified subscribers that publication of the Texas Subsequent History Table will be discontinued and no further updates will be produced, due to “insufficient market interest.” Practitioners have been extracting writ (and since 1997, petition) history from the tables since their initial publication in 1917 as The Complete Texas Writs of Error Table . The tables, later published by West, have been used for nearly a century to determine how the Texas Supreme Court or Court of Criminal Appeals disposed of an appeal from an intermediate appellate court. The purpose of adding this notation to citations is to indicate the effect of the Texas Supreme Court’s action on the weight of authority of the Court of Appeals’ opinion.  For example, practitioners may prefer to use as authority a case that the Texas Supreme Court has determined is correct both in result and legal principles applied (petition refused), rather than one that simply presents no error that requ...

Lessons for Today from the Genocide Against the Tutsi in Rwanda

“Man’s inhumanity to man is not only perpetrated by the vitriolic actions of those who are bad. It is also perpetrated by the vitiating inaction of those who are good.” –Martin Luther King Jr.   Last week, I had the pleasure of attending  Professor Zachary D. Kaufman ’s presentation on  Lessons for Today from the Genocide Against the Tutsi in Rwanda  hosted by the  Johannesburg Holocaust & Geno cide Ce ntre . Among the many takeaways highlighted by Professor Kaufman and drawn from  Lessons from Rwanda: Post-Genocide Law and Policy   were ten simple yet profound lessons:   Lesson #1: Hate speech is dangerous.   To illustrate the role that hate speech played in the Rwandan genocide, Professor Kaufman discussed multiple forms of  propaganda , such as Kangura, Radio Rwanda, and RTLM “hate radio.”   He concludes that we must have limits, including with respect to social media, and further asserts that social media must do a better jo...