Wesley Snipes charged with tax fraud

Wesley Snipes

TAMPA, Florida - Actor Wesley Snipes, star of the Blade movie series, was charged with tax fraud today in an indictment that alleges he illegally claimed refunds of almost US$12 million.

A warrant has been issued for Snipes' arrest, but the actor's whereabouts were unknown, Paul Perez, the US Attorney for the Middle District of Florida, told a news conference in Tampa.

Snipes, 44, who has appeared in more than three dozen movies including Jungle Fever, White Men Can't Jump, Rising Sun and US Marshals, could face 16 years in prison if convicted on all charges.

Snipes was charged along with Eddie Ray Kahn of Sorrento, Florida, and Douglas Rosile of Venice, Florida, in a scheme to cheat on income taxes.

Snipes' spokesman was not immediately available to comment.

Rosile has surrendered to authorities and Kahn is believed to be in Panama, Perez said.

The indictment alleges that Snipes failed to file federal income tax returns from 1999 through 2004 and conspired with Kahn and Rosile to file two amended returns for Snipes for 1996 and 1997, fraudulently claiming tax refunds of almost US$12 million.

Perez said Kahn is the founder of American Rights Litigators (ARL) and its successor, Guiding Light of God Ministries (GLGM), both based in central Florida. Rosile is an accountant who prepared tax returns for ARL members.

The indictment said ARL claimed to be an organization that used aggressive accountants to protect Americans' rights and the GLGM "held itself out as a Christian ministry ... established to assist men and women in their pursuit of truth and freedom as Americans."

"In reality, ARL and GLGM were for-profit, commercial enterprises that promoted and sold fraudulent tax schemes ...," the indictment said.

The indictment said Rosile prepared tax returns for his clients according to the "861 argument," which claims the IRS imposes taxes only on income from certain foreign-based activities. As a result, the argument says, US citizens are not subject to tax on income from within the United States.

The "861 argument" is a fraudulent misapplication of section 861 of the tax code that has been consistently rejected by courts, the indictment said.

The conspiracy and false claim charges each carry a maximum sentence of five years in prison and a US$200,000 fine.

Snipes also faces up to one year in prison and a US$100,000 fine on each charge of failing to file income tax returns.

Snipes, who was born in Orlando, Florida, and once had a home in nearby Windermere, broke into movies in the 1986 film Wildcats, starring Goldie Hawn.

He is perhaps best known for action roles including the Blade thrillers, in which he starred as a heroic half-human, half-vampire. He earned US$13 million for his role in Blade: Trinity, the third in the series, according to the IMDb on-line movie database.

- REUTERS/VNU