United States v. Kahre, No. 09-10471 (9th Cir. 2013)Annotate this Case
Defendants appealed their convictions for various criminal tax offenses arising from their use of gold and silver coins to pay wages and thus avoid the reporting of payroll and income taxes. The court affirmed the district court's denial of Defendant Kahre's motion to suppress evidence seized from the properties at issue; the court held that the district court correctly determined that gold and silver coins used to pay wages were properly assessed at their fair market value and that defendants had sufficient notice that their conduct was illegal under the tax laws; the district court properly denied defendants' motion to disqualify the prosecutor because defendants failed to present clear and convincing evidence of an impermissible conflict of interest or of prejudice; the court rejected defendants' evidentiary arguments; defendants were not entitled to a new trial based on the district court's comments or conduct; and Kahre's below-guidelines sentence imposed for the extensive illegal payroll scheme with its associated tax loss, was comparable to sentences for similar crimes, and was reasonable. Accordingly, the court affirmed the judgment of the district court.