Wesley Snipes

Wesley Snipes
Born:	July 31, 1962 Orlando, Florida
Charges:	Willful failure to file federal income tax returns
Sentence:	3 years
Facility:	FCI McKean
Status:	Released

Wesley Trent Snipes (born July 31, 1962) is an American actor, film producer, and martial artist who served nearly three years in federal prison for willful failure to file federal income tax returns. Snipes, known for his roles in action films including the "Blade" trilogy and "White Men Can't Jump," was convicted in 2008 after failing to file tax returns for several years while earning tens of millions of dollars. He served his sentence at FCI McKean in Pennsylvania and was released in 2013.

Summary

Wesley Snipes became one of Hollywood's highest-paid actors in the 1990s, earning an estimated $37 million in 1998 alone. His tax prosecution stemmed from his association with anti-tax movement figures who convinced him that he was not legally required to pay income taxes. Snipes stopped filing returns in 1999 and submitted fraudulent amended returns seeking refunds of $7 million in taxes he had previously paid. His case became a high-profile example of the consequences of tax evasion and the dangers of tax protest schemes.

Despite acquittals on the most serious felony charges of tax fraud and conspiracy, Snipes was convicted on three misdemeanor counts and received the maximum sentence of three years—an unusually harsh penalty for misdemeanor tax offenses that prosecutors argued was necessary given the magnitude of his unpaid taxes, estimated at over $15 million.

Background

Snipes was born on July 31, 1962, in Orlando, Florida, and raised in the South Bronx, New York. He attended the High School of Performing Arts in Manhattan and earned a bachelor's degree from the State University of New York at Purchase. Snipes trained extensively in martial arts, earning black belts in several disciplines.

Snipes rose to prominence in the late 1980s and 1990s with roles in films including "Major League," "New Jack City," "White Men Can't Jump," "Demolition Man," and "Passenger 57." His most commercially successful role was as the vampire hunter Blade in the "Blade" trilogy, which helped establish the modern superhero film genre. At the height of his career, Snipes was among Hollywood's most bankable action stars.

Indictment, Prosecution, and Sentencing

Tax Protest Involvement

Beginning in 1997, Snipes became involved with tax protest promoters who advocated the theory that Americans are not legally required to pay income taxes. He associated with Eddie Ray Kahn, leader of a group called American Rights Litigators, who promoted fraudulent tax avoidance schemes. Snipes stopped filing tax returns after 1998 and submitted amended returns seeking refunds of millions of dollars in taxes he had previously paid, claiming those payments had been made in error.

Criminal Charges

In October 2006, a federal grand jury indicted Snipes on charges of conspiracy to defraud the United States, filing a false claim for payment against the United States, and willful failure to file federal income tax returns. The charges alleged that Snipes had earned approximately $38 million between 1999 and 2004 but had paid no income taxes and had submitted fraudulent refund claims totaling $12 million.

Trial and Conviction

Snipes was tried in January and February 2008 in U.S. District Court in Ocala, Florida. On February 1, 2008, the jury acquitted Snipes of the most serious charges—conspiracy and filing a false claim—but convicted him on three misdemeanor counts of willful failure to file tax returns for the years 1999, 2000, and 2001. Each count carried a maximum penalty of one year in prison.

Sentencing

On April 24, 2008, U.S. District Judge William Terrell Hodges sentenced Snipes to the maximum three years in federal prison—one year on each count, to run consecutively. The judge rejected defense arguments for probation, stating that Snipes had shown a "history of contempt" for the tax system. The sentence was considered harsh for misdemeanor offenses and was widely seen as a message to deter others from tax protest activities. Snipes was allowed to remain free pending appeal but eventually reported to prison in December 2010 after his appeals were exhausted.

Prison Experience

Snipes reported to Federal Correctional Institution McKean in Lewis Run, Pennsylvania, on December 9, 2010. During his incarceration, Snipes reportedly worked in the prison's commissary and participated in various programs. He was released on April 2, 2013, after serving approximately 28 months with credit for good behavior, followed by a period of home confinement.

Post-Release Career

Following his release, Snipes resumed his acting career, appearing in "The Expendables 3" alongside Sylvester Stallone and other action stars. He has continued to work in film and television, rebuilding his career after his incarceration. Snipes resolved his outstanding tax obligations with the IRS and has not faced additional legal troubles.

Public Statements and Positions

Snipes has been relatively reserved in public statements about his conviction and imprisonment. Prior to his incarceration, he maintained that he had relied on advisers who he believed were giving him accurate legal advice about his tax obligations. At sentencing, his attorneys argued that Snipes had been misled by tax protest promoters and that the case did not warrant imprisonment for what were ultimately misdemeanor offenses.

Since his release, Snipes has focused on his career rather than extensively discussing his legal troubles. In interviews, he has acknowledged that the experience was difficult but has declined to elaborate extensively on his time in prison.

Terminology

• Willful Failure to File: A federal misdemeanor offense involving the intentional failure to file a required tax return, punishable by up to one year in prison for each year of non-filing.

• Tax Protester: An individual who denies the legality of federal income taxes based on various discredited legal theories, often promoting fraudulent tax avoidance schemes.

• Amended Return: A tax return filed to correct errors on a previously filed return, which can be used fraudulently to claim improper refunds.

See also

• Prison Consultants
• Federal Good Time Credit Policies
• FCI McKean