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Non-Withholding Employer Simkanin Pleads Guilty

10-05-03

US District Court Colludes With DOJ To Force Plea
Court Filings Document Trail of Denied Due Process

Schulz Appears on FOX News To Respond
 
Early last week, non-withholding employer Dick Simkanin plead guilty to a single felony charge of failing to withhold employment taxes from his employees. 

As has been witnessed repeatedly in other income tax related prosecutions, Simkanin's prosecution is yet another example of how the people are being systemically denied due process of law in the courts as they have attempted to force the government to officially assert what specific legal authority compels income tax filing, payment or withholding. 

Simkanin, held in virtual isolation from the public since his arrest in June, has spent over three months in a federal detention facility awaiting trial.  He currently remains incarcerated pending sentencing next January. 

The trial judge, Judge John McBryde was effectively suspended from the 5th US District Court in 2000 for over a year as a result of a special, several year judicial investigation that documented a long history of McBryde's flagrant abuses of judicial power and courtroom practices that negatively affected the judicial process, i.e., denied due process.  

Here is the Title 26 tax law that employer Simkanin was charged with violating: 

"Section 7202. Willful failure to collect or pay over tax.
 Any person required under this title to collect, account for, and pay over
any tax imposed by this title who willfully fails to collect or truthfully
account for and pay over such tax shall, in addition to other penalties
provided by law, be guilty of a felony and, upon conviction thereof, shall
be fined not more than $10,000, or imprisoned not more than 5 years, or
both, together with the costs of prosecution."

Note that THIS law does not specify WHO is actually required to collect, account, pay, etc.
NO statute that would IMPOSE the legal obligation has ever been averred by the DOJ - not even on the indictment.   Even after Simkanin's formal demand that the government produce such a law, they have yet to do so and the Court did not force them to.

The Federal Rules of Criminal Procedure 7(c)(1) requires the indictment to "state for each count the official or customary citation of the statute, rule, regulation or other provision of law which the defendant is alleged therein to have violated." The notification of legal responsibility "or other provision of law which the defendant is alleged therein to have violated" is not found in the indictment. Criminal process must allege every essential element of the offense.

Below are links to key court documents in from the Simkanin case.

The documents demand proof of IRS' legal jurisdiction, documentation relating to the indictment and the grand jury process.  They advance a variety of substantive legal arguments that argue compellingly for the charges against Simkanin to be dismissed.

Virtually none of the critical legal documents requested by Simkanin's attorneys were produced by the government.  Virtually all of the motions containing the crucial legal arguments to dismiss were rejected, "unfiled" or simply stricken from the court record by judicial fiat.

The flawed indictment that fails to cite ANY specific statutory obligation to withhold or act as a withholding agent:

01-SupersedingIndictment.pdf
02- GovtRespondsToBadIndictmentCharge.pdf
03-Pages1-4BillOfParticularsMotion.pdf

The Defendant's motions to dismiss based on lack of federal criminal jurisdiction inside the 50 states, lack of a proper indictment and lack of ANY law that imposes any legal obligation regarding withholding:

04-MoDismissLackPersonSubjectJur.pdf
05-MoDismissMemoLaw.pdf
05b-DocDiscoveryRequest.pdf

The denial of due process based on local court "rules" practices, and judicial fiat ignoring due process of law.  Note Judge McBryde's warning to Simkanin's attorney in document #06.

06-JudgeFriviolousDismiss.pdf
07-JudgesRules.pdf
08-OrderStrikeEvidenceCompel.pdf
09-Stricken.pdf
10-GuiltyPlea.pdf

Read the previous WTP article regarding Simkanin's pre-trial incarceration documenting the courtroom abuses and judicial suspension of USDC Judge McBryde.

Read an overview of Employment/FICA Tax Law  (.pdf)

According to a New York Times article of 10-1-03, Simkanin was an advocate of the "861" argument which states that for "income" to be taxable, it must come from taxable sources.  The Internal Revenue Code specifically states to use Section 861 to determine "taxable income" and lists the sources of income that are so taxable. The taxable sources all regard foreign corporations and foreign commerce.
So, what really is Taxable Income?
 

Schulz Appears on FOX News

Bob Schulz was invited to appear on FOX News with new anchor Neil Cavuto to respond to Simkanin's guilty plea.  Click here to listen to Schulz on Cavuto's Thursday, November 2nd show.


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