Three COs face prison for war tax refusal

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On July 1, three members of a small religious group from New Jersey were sentenced to prison terms for their refusal to pay taxes for military use. Kevin McKee, Joe Donato and Inge Donato were sentenced to prison terms of 24, 27 and 6 months, respectively for "conspiring to defraud the United States," attempted evasion of employment taxes, and failure to file personal income tax returns. Prosecution of religious pacifist tax resisters is almost unheard of since 1950, and prison sentences are exceedingly rare.

The following article was compiled by Ruth Benn from reports by Peter Goldberger. A previous article can be found at: February 2005 http://www.nwtrcc.org/mtap05/mtap0205.html#three

By the end of the first sentencing hearing on June 17 for three members of Restored Israel of Yahweh, the three defendants and their supporters were very hopeful. U.S. District Judge Jerome B. Simandle had listened to their stories for the first time and even asked the government if they would consider "compromising" the case by zeroing out the defendants' past tax liabilities if they would agree to pay a large fine. The fine, like all criminal fines in federal court, would by law go to the Crime Victims Assistance program rather than the general fund of the Treasury, (i.e., to military spending). The three defendants had been convicted by a jury in federal court in Camden, New Jersey, in December 2004 on charges of "conspiring to defraud the United States," attempted evasion of employment taxes, and failure to file personal income tax returns.

Judge Simandle delayed final sentencing until July 1, but when court was back in session, he was back to going by the book. Kevin McKee and Joe Donato, who ran McKee-Donato Construction Company, got 24 and 27 months respectively. Occasional bookkeeper Inge Donato, who has been married to Joe for 25 years, was sentenced to 6 months. They were convicted of failing to withhold and pay over the employment tax on the McKee-Donato employees who were fellow members of the Restored Israel of Yahweh. (They did withhold and pay on nonmember employees.) While the sentences were half or less what the prosecutor had asked, this was a blow after the hopeful feelings from the first hearing. Along with the prison sentences, the judge imposed post-imprisonment terms of supervision, which expressly require them to file past and future tax returns and to pay past and future taxes. In addition, all three were fined, even though the Department of Justice Tax Division prosecutor refused to consider abating the unpaid tax amount in view of the fines imposed, as the judge had suggested in the first hearing.

Restored Israel of Yahweh is a small, unaffiliated Bible study-based religious society (it has under 50 members) in southern New Jersey. Their founder and prophet, Leo Volpe (later known as "Jeremiah") was a WW II draft refuser who left the Jehovah's Witnesses to teach a gospel of pacifism. Volpe himself was convicted of failure to file tax returns in 1978 and sentenced to serve four months' imprisonment. That little-known case is one of very few in which religiously motivated resisters have been convicted and sentenced to jail for refusing to pay taxes for war. The defendants were not taken into custody, but must turn themselves in when the Bureau of Prisons selects the location in August. Kevin has decided to appeal, and the Donatos are considering that option. Bail pending appeal would be possible, although not likely.

In the end Judge Simandle did not treat this faith-based action as anything more than ordinary criminal conduct, albeit with a good rather than a bad motive. The prosecutors admitted at the sentencing that they could not dispute the expert affidavit of Professor Scott H. Bennett of Georgian Court University, Lakewood, New Jersey, that criminal prosecution of religious pacifist tax resisters on felony charges is almost unheard of over the last 55 years, and prison sentences are exceedingly rare. There will be a lot to discuss at future meetings and in counselor trainings about how these gentle folks wound up being the first pacifist tax resisters to be prosecuted and jailed -- possibly ever -- for felony conspiracy to defraud the U.S. and attempted tax evasion, the most serious criminal charges in the Internal Revenue Code.

Peter Goldberger, Ardmore, Pennsylvania, is the attorney representing Inge Donato for sentencing and appeal.

Contributions to the defense can be made to the attorney escrow account: Peter Goldberger, Attorney, IOLTA Account, c/o Peter Goldberger, 50 Rittenhouse Place, Ardmore, PA 19003. Letters of support can be mailed to: The Restored Israel of YAHWEH, P.O. Box 801, Mays Landing, NJ 08330

Take Action: COs shouldn't go to jail!