PHILADELPHIA, PA – James Kerr Schlosser, 59, of Bird-in-Hand, Pennsylvania, is facing serious time after a federal jury found him guilty of a two-decade-long scheme to dodge his taxes. Schlosser, a former manufacturer’s rep peddling medical gear to hospitals, systematically refused to file federal income tax returns starting in 1995, choosing instead to build a labyrinth of offshore trusts and shell corporations to hide his earnings.
Prosecutors laid out a case showing Schlosser raked in approximately $2.3 million between 1994 and 2014, all while deliberately avoiding his tax obligations. He didn’t just *forget* to file; he actively worked to conceal the money, setting up foreign business trusts registered in Nevada and funneling income through mailing forwarding services. These services then redirected the funds—originally sent to the bogus trusts—directly to Schlosser in Pennsylvania, or to individuals he’d strong-armed into acting as trustees.
The defense wasn’t about disputing the income, but the *why*. Schlosser took the stand himself, claiming he refused to file because he believed using a Social Security number was akin to accepting the “mark of the beast,” a reference to a passage in the Bible. A bizarre justification that clearly didn’t sway the jury. The courts, unsurprisingly, remain unimpressed by theological arguments when it comes to tax law.
“The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld these laws,” stated Internal Revenue Service Criminal Investigation Acting SAC Gregory Floyd. “Convictions, like the one returned against James K. Schlosser, send a loud and clear message that regardless of their opinions, people who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions.” Translation: don’t try this at home.
Schlosser is scheduled to appear before United States District Judge Jeffrey L. Schmehl on June 10, 2017, to receive his sentence. He’s looking at a maximum of 5 years behind bars, a hefty $450,000 fine, and will be responsible for covering the costs of his prosecution. A costly belief, to say the least.
The investigation was spearheaded by the Internal Revenue Service Criminal Investigations division, with Assistant United States Attorney Floyd J. Miller and DOJ Trial Attorney Derek Ettinger handling the prosecution. This case serves as a stark reminder that the IRS doesn’t play when it comes to tax evasion, no matter how creatively—or religiously—you try to justify it.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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