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Wednesday, December 13, 2006

Ind. Decisions - More on 7th Circuit decision involving East Chicago attorney

Yesterday's 7th Circuit decision in USA v. Fife, summarized in this ILB entry, is the subject of a story today in the NWI Times written by Joe Carlson. Some quotes:

Sophisticated but not intelligent: That's how a federal appeals court described the criminal tax evasion scheme that sent former East Chicago consultant James Fife to prison until 2009.

Federal judges on Tuesday denied Fife's appeal for a shorter sentence, saying the covert machinations behind the scheme justified Fife's stiff sentence.

Fife received nearly four years in prison for admitting he and his wife, Karen Krahn, formed five fake companies that received consulting fees for work that Fife already was being paid to perform as one of former Mayor Robert Pastrick's closest political advisers.

"In short, the corporations were merely shells used to conceal large fees Fife was reaping from his dealings with the city," U.S. Circuit Judge Michael Kanne wrote. "He used the position (city officials) placed him in to funnel public funds to himself and his shell corporations for personal use."

Fife and Krahn did not pay taxes on $892,509 that the city paid their shell corporations between 1998 and 2001, resulting in a loss of more than $380,000 in unpaid taxes.

Posted by Marcia Oddi on December 13, 2006 09:47 AM
Posted to Ind. (7th Cir.) Decisions