Joe Francis - Girls Gone Wild - IRS Indictment 20 Million Dollar Tax Evasion

[Lee]

APRIL 11-- Joe Francis, the "Girls Gone Wild" founder, was indicted today on federal tax evasion charges for illegally deducting more than $20 million in phony business expenses from his 2002 and 2003 corporate tax returns. According to an indictment filed in U.S. District Court in Reno, Nevada, Francis, 34, sought to conceal income through the use of offshore companies and nominees. At one point, he transferred $15 million from one offshore bank account to a California brokerage account in the name of a Cayman Islands corporation he controlled. Below you'll find a copy of the indictment filed against Francis, who is pictured in the mug shot at right. If convicted of the federal charges, he faces a maximum of 10 years in prison and fines of up to $500,000. Francis was arrested yesterday on an unrelated federal warrant stemming from a civil lawsuit brought against him by seven underage women who were filmed by "Girls Gone Wild" cameramen in Florida in 2003. The contempt citation was issued after Francis rebuffed a judge's order to settle the case with the aid of a mediator. (7 pages)

http://www.thesmokinggun.com/archive...efrancis1.html

Dayum, the government certainly seem to like this guy lately

Regards,

Lee

[chadknowslaw]

When I was taking my undergraduate classes there was a big poster hanging in the hallway that said "It Took an Accountant to Catch Al Capone"

Al Capone went to prison for tax evasion, not being the head of organized crime in Chicago.

Keeping your business house in order is so very important in any business, but especially in the adult industry -- they may not be able to convict on obscenity because of the vagueness of the definition, they may not be able to convict on 2257 because nobody can understand it, but it is not so hard to convince a jury that someone has evaded taxes and get a conviction. I am sure Joe will be a big celebrity in prison.

[basschick]

greed never ceases to amaze me. how much money does one person actually need?

[chubbs]

@ 10 years and a $500k fine. He won't do a day in jail and even he is hit with the max. fine, he'll pay it and move on. Dudes got BANK.

[chubbs]

greed never ceases to amaze me. how much money does one person actually need?

well, if you have $5mil, and the house you are wanting is gonna cost you $20mil, what are you suppose to do? Earn the money? j/k

I agree. Am totally amazed at how greedy some people are. Not like he can take any of that cash with him when he dies.

I hope to die broke and happy

--Chubbs

[chadknowslaw]

@ 10 years and a $500k fine. He won't do a day in jail and even he is hit with the max. fine, he'll pay it and move on. Dudes got BANK.

So did Al Capone, and he died in prison.

If Francis is convicted, I seriously believe he will get prison time. He now has a prior record, and he has given prosecutors a reason to hate him. Judges really don't like tax evaders either -- especially big ones. Even though they will not admit it, a judge looks at a guy making millions of dollars a year and cheating on his taxes, while the judge is making $150K a year and getting a W2 with few ways to cut his tax liability and that judge has little problem ordering a little behind bars time for the offender.

I predict he will serve between 5 months and 18 months if convicted.

[chubbs]

Francis is no Capone.

Chad, you'd know better than I for sure. I just don't think this guy is that important. He'll get a slap on the wrist and a fine. Make a few donations and it'll all go away.

[chubbs]

How can he go to jail yet R. Kelly is a free man even though there is video tape of him pissing on a minor?

I know there is no comparison. Just thinking out loud.

--Chubbs

[chadknowslaw]

Francis going to prison would be the delight of fundamentalists everywhere, and tax evasion is a good way to "Gotcha!". If he does not spend some time in prison now, I am sure that the US Attorneys office would get the letters "Why didn't you put him away when you had the chance!!!????"

This is a guy who going to prison has political implications. I am sure Jerry Falwell was not happy when Francis basically got probation for his last run-in with the law. Since then he broke probation and now he is charged with another crime. Add all the factors together and I think he will get real prison time.

He will get out after a fairly short time but I really think that he will go to prison if convicted. Martha Stewart went to the big house for a few months too, and she came out fine. I am sure Joe will weather the storm just as well.

[chadknowslaw]

How can he go to jail yet R. Kelly is a free man even though there is video tape of him pissing on a minor?

I know there is no comparison. Just thinking out loud.

--Chubbs

Francis is in jail now on a probation violation, not related to the tax evasion. That just makes it easier to find him!!!

[chubbs]

Francis is in jail now on a probation violation, not related to the tax evasion. That just makes it easier to find him!!!

I read he would not shut up in court and was held in contempt.