|
February 7, 2002
The United States Attorney's Office for the Northern District of California announced that a dentist in San Jose, Donald E. Wishart, has been found guilty after a bench trial of tax violations, mail fraud and obstruction of justice.
Dr. Wishart, age 65, was found guilty on February 5, 2002 by United States District Judge Jeremy Fogel on one count of mail fraud in violation of 18 U.S.C. 1341, one count of submitting a false claim to the United States in violation of 18 U.S.C. 287, one count of obstructing federal agents in violation of 26 U.S.C. 7212(a), and four counts of willful failure to file a U.S. Individual Income Tax Return (Form 1040) in violation of 26 U.S.C. 7203. The convictions followed a two-week bench trial.
During a two-week bench trial, the evidence showed the following: Dr. Wishart traveled to north-central Montana to attend a two-day seminar conducted by the Montana Freemen in December 1995. While at the seminar, Dr. Wishart listened to Freemen members lecture about racism, anti-Semitism and various anti-government tenets. At the end of the seminar, in exchange for approximately $100, Dr. Wishart received four fraudulent financial instruments styled "Comptroller Warrants" purportedly totaling over $7 million. The Court found that "those who attended [the] seminars had to know that the [warrants] had no actual value and that, in fact, they were simply a means of trying to put one over on somebody or trying to catch somebody in a snare by inadvertently negotiating the [worthless warrants]."
The Court ruled that Dr. Wishart submitted the Freemen warrants for payment to Bay View Federal Bank and at least two government agencies, including the IRS, knowing they were worthless. Dr. Wishart's mail fraud conviction stemmed from his submission to Bay View Federal Bank of a worthless Freemen warrant with a $1,576,000 face amount. The evidence showed that Dr. Wishart mailed the warrant in an effort to redeem his foreclosed residence located in Los Altos Hills. His false claim conviction was based on submission of an additional Freemen warrant in an effort to pay off a prior federal income tax debt, estimated at over $1.3 million.
The Court further found that, following his submission of the Freemen warrant to the IRS, Dr. Wishart sought to impede IRS agents in their collection efforts by sending the agents lien documents threatening financial harm totaling $200 million. This activity was the basis for Dr. Wishart's obstruction violation.
The tax charges stemmed from Dr. Wishart's failure to file income tax returns for the years 1995 through 1998. The Court ruled that during these years, Dr. Wishart's substantial earnings from his dental practice required him to file returns.
The Court remanded Dr. Wishart to the custody of the United States Marshal pending sentencing, which is scheduled for May 7, 2002. The maximum statutory penalties are as follows: 18 U.S.C. 1341 (30 years and a fine of $1 million); 18 U.S.C. 287 (five years and a fine of $250,000); 26 U.S.C. 7203 (four counts four years and a fine of $100,000); 26 U.S.C. 7212(a) (three years and a fine of $250,000). Any sentence, however, would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors and would be imposed in the discretion of the Court.
Dr. Wishart was indicted on July 12, 2000. This case was investigated by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by Trial Attorneys Thomas S. DiLeonardo and Gregory S. Gordon of the United States Department of Justice Tax Division, Western Criminal Enforcement Section, Washington, D.C.
A copy of this press release and related pleadings may also be found on the U.S. Attorney's Office website at www.usdoj.gov/usao/ndca.
All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.
|
|
