U.S.A. TAX EVASION

Greymouth Evening Star, 26 April 1941, Page 2

U.S.A. TAX EVASION

MILLIONAIRE SENTENCED. [by cable.—press assn—copyright.] NEW YORK, April 24. Joseph Schenck, the .multi-mil-lionaire movie executive, was sentenced, to thrbe years’ imprisonment and fined 20,000 dollars , for income tax evasion. , Schenck was convicted last weeu of evading taxes. A co-defendant. Joseph Moskowitz, Schenck’s Eastern representative, was sentenced to a year’s imprisonment, and fined 10.,000 dollars. Schneck was visibly affected, but was silent when sentenced. “It is always an unpleasant duty for a judge to pass, sentence of the Court,” said the Judge. “It is particularly so here, where the defendants have risen to such high positions. The Court must consider the deterrent effect on others.” Schenck’s trial produced some remarkable witnesses. The Government presented evidence showing Schenck deducted household expenses, gambling debts, and money spent on pleasure parties and yacht repairs. One deduction was 60 cents, cost of a lunch for Doris T. Duke, the world's richest girl. Another was 25 dollars for flowers for Shirley Temple. The prosecution produced records designed to show Schenck had claimed as a deduction huge gambling losses, while he neglected to report his winnings.