United States Seventh Circuit

District court action enjoining defendant from selling materials based on his premise that customers could stop paying federal income taxes and avoid or defeat prosecution by relying on the materials is affirmed where: 1) defendant violated 26 U.S.C. sec. 6700 by selling an illegal method by which to avoid paying taxes, and knew that his statements regarding the illegal plan were false or fraudulent; and 2) the injunction was properly issued and did not violate the First Amendment. Denial of government's request to require defendant to divulge a list of his customers is reversed where: 1) defendant would not be harmed by identifying his customers and it would serve the public interest for the government to receive the full list; and 2) an order divulging the client list does not infringe on the First Amendment rights of defendant's customers.

Appellate Information

• Argued 10/28/2008
• Decided 04/06/2009
• Published 04/06/2009

Judges

• BAUER, Circuit Judge., Before BAUER, RIPPLE and EVANS, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellees:
  
• Richard Morrison, Attorney, Richard L. Parker, Attorney, Andrea R. Tebbets, Attorney (argued), Department of Justice, Washington, DC, for Plaintiff-Appellee, Cross-Appellant., Jeffrey A. Dickstein, Attorney (argued), Fox Point, WI, for Defendant-Appellant, Cross-Appellee.