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1931 43
CHICAGO ILL DAILY NEWS
FRIDAY, JUNE 5, 1931,
TAX
FRAUD
EXTRA
1931 43
The income charged to Capone was
relatively small, about $900,000 for the
F x-year period. Government men
explained this by saying the gang
leader had so disguised his holdings
JURY'S ACTION
it was possible for the inquiry to
develop only a small portión of the
Capone income.
ENDS INQUIRY
Called Greatest Inquiry.
The inquiry which resulted in to-
day's indictment against Capone was
LASTING 2 YEARS
termed "the masterpiece of the special
intelligence unit," and the proceedings
before the grand jury were in charge
of District Attorney George E. Q.
No. 1 Hoodlum Faces Long
Johnson's assistants, Dwight H.
Green, Jacob I. Grossman and Sam-
Term in Prison Un-
uel G. Clawson.
der Charges.
Government men, speaking "off
the record," asserted they had an air-
tight case against the gang leader.
Capone was expected to surrender
GUILTY PLEA HINTED
within a day or two to post the bond
set, as he is already under a sentence
of six months in jail for contempt of
"Scareface Al" Capone, jaiibird and
federal court. His attorneys have ap-
brothelkeeper," and rated as the No. 1
pealed this case and federal prosecu-
hoodlum of the world, today was
tors have been hurrying their reply
indicted in the Federal court for
briefs in the hope of obtaining an
income tax fraud after a government
early decision from the higher court.
inquiry that lasted more than two
The indictment of Capone culmi-
years.
nates District Attorney Johnson's
He faces a lengthy penitentiary
campaign against Chicago gangsters
term and it is rumored he will plead
by prosecuting them under the in-
guilty.
come-tax law, a campaign in which
A federal grand jury which has
he and his assistants have obtained
been sitting continuously for more
convictions against every gangster
than three months voted the indict-
and politician tried.
ments after hearing the three` last
Trial to Take Weeks.
witnesses this morning.
Capone's trial on the income-tax
The government charges that Ca-
charges, the prosecutors said, would
pone failed to make any return dur-
probably take weeks. They said that
ing the period 1924 to 1929 and &
more than a hundred federal agents-
charge of attempt to defraud the
detectives, income-tax experts, finan-
United States government was in-
cial men, accountants, men with
cluded in the indictment. The fraud
brokerage house experience - had
charge brings within the statute of
worked on the Capone case for two
limitations Capone's financial deal-
years, that more than 1,000 persons
ings for the earlier years.
were interviewed during the inves-
Capone, on a conviction, faces a
tigation and scores of witnesses were
ma ximum penalty of thirty-two years
questioned before the federal grand
in the penitentiary and fir S of $80,-
jury which indicted Capone.
000.
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"ocrText": "1931 43\nCHICAGO ILL DAILY NEWS\nFRIDAY, JUNE 5, 1931,\nTAX\nFRAUD\nEXTRA\n1931 43\nThe income charged to Capone was\nrelatively small, about $900,000 for the\nF x-year period. Government men\nexplained this by saying the gang\nleader had so disguised his holdings\nJURY'S ACTION\nit was possible for the inquiry to\ndevelop only a small portión of the\nCapone income.\nENDS INQUIRY\nCalled Greatest Inquiry.\nThe inquiry which resulted in to-\nday's indictment against Capone was\nLASTING 2 YEARS\ntermed \"the masterpiece of the special\nintelligence unit,\" and the proceedings\nbefore the grand jury were in charge\nof District Attorney George E. Q.\nNo. 1 Hoodlum Faces Long\nJohnson's assistants, Dwight H.\nGreen, Jacob I. Grossman and Sam-\nTerm in Prison Un-\nuel G. Clawson.\nder Charges.\nGovernment men, speaking \"off\nthe record,\" asserted they had an air-\ntight case against the gang leader.\nCapone was expected to surrender\nGUILTY PLEA HINTED\nwithin a day or two to post the bond\nset, as he is already under a sentence\nof six months in jail for contempt of\n\"Scareface Al\" Capone, jaiibird and\nfederal court. His attorneys have ap-\nbrothelkeeper,\" and rated as the No. 1\npealed this case and federal prosecu-\nhoodlum of the world, today was\ntors have been hurrying their reply\nindicted in the Federal court for\nbriefs in the hope of obtaining an\nincome tax fraud after a government\nearly decision from the higher court.\ninquiry that lasted more than two\nThe indictment of Capone culmi-\nyears.\nnates District Attorney Johnson's\nHe faces a lengthy penitentiary\ncampaign against Chicago gangsters\nterm and it is rumored he will plead\nby prosecuting them under the in-\nguilty.\ncome-tax law, a campaign in which\nA federal grand jury which has\nhe and his assistants have obtained\nbeen sitting continuously for more\nconvictions against every gangster\nthan three months voted the indict-\nand politician tried.\nments after hearing the three` last\nTrial to Take Weeks.\nwitnesses this morning.\nCapone's trial on the income-tax\nThe government charges that Ca-\ncharges, the prosecutors said, would\npone failed to make any return dur-\nprobably take weeks. They said that\ning the period 1924 to 1929 and &\nmore than a hundred federal agents-\ncharge of attempt to defraud the\ndetectives, income-tax experts, finan-\nUnited States government was in-\ncial men, accountants, men with\ncluded in the indictment. The fraud\nbrokerage house experience - had\ncharge brings within the statute of\nworked on the Capone case for two\nlimitations Capone's financial deal-\nyears, that more than 1,000 persons\nings for the earlier years.\nwere interviewed during the inves-\nCapone, on a conviction, faces a\ntigation and scores of witnesses were\nma ximum penalty of thirty-two years\nquestioned before the federal grand\nin the penitentiary and fir S of $80,-\njury which indicted Capone.\n000."
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