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Kidwell Found Guilty Of All Counts In Tax Evasion Case

Tuesday, February 03, 2009

A federal jury late Tuesday morning returned guilty verdicts on all five felony counts on tax evasion charges against Christian counselor Chris Kidwell.

He remains free on bond, and a sentencing date has not yet been set.

The counts carry up to five years in prison, but his sentencing range is expected to be between 21 and 27 months. The charges also carry a possible fine up to $250,000.

Defense attorneys had contended he did not report large chunks of his income because he is lost when it comes to financial matters.

But prosecutor Gary Humble said Kidwell "didn't miss a trick" when it came to figuring out the deductions he was due. He said he listed a $1 Visa charge and counted "his kids' cell phones."

The jury in the courtroom of Judge Curtis Collier deliberated for half an hour, then resumed talks on Tuesday at 9 a.m. The verdicts came at around 11:45 a.m.

Attorney Richard Pierce said Kidwell admits he owes the $54,000 in taxes the government says he avoided for the tax years 2002, 2003 and 2004.

He said, "All the government has is the numbers," and said prosecutors cannot prove that he "wilfully" intended to avoid paying his fair share of taxes.

Attorney Pierce said, "He didn't understand this stuff. That is why he relied on his accountants."

He said Janet Beahm, a former IRS official who now works with a private accounting firm said Kidwell accountants Larry Stophel and Ed Eaves "did not exercise due diligence" in handling the Kidwell returns. He said they should have realized that the numbers he was giving them "did not pass the smell test."

The attorney said accountant Stophel "buried his head in the sand" and did not realize that Kidwell had much additional taxable income.

Kidwell paid no income taxes for 2002 and 2003, and $17,993 in 2004.

According to an IRS investigation, Kidwell took in over $260,000 in 2002 and spent $189,482. His income for 2003 was $324,118, though his tax return reported $146,050 in gross receipts. The Kidwell figure for his gross receipts in 2004 was $152,372, but counting all his income it should have been $263,376, officials said.

Attorney Pierce said witness Martin Pierce had stated that Kidwell was one of the three least sophisticated clients he ever had and that he "does not understand business and corporate matters."

He said his main character witnesses, Brad Rymer and Ben Haden, both said they had known him for years and did not believe he would be untruthful.

Wayne Grant, the lead defense attorney, said, "As a minister and as someone who has read the Scriptures, if he's lied, he'll have to account for it someday other than this jury."

Prosecutor Humble said Kidwell had studied at Oxford, worked at a bank and been an auditor for BlueCross.

He said the Zachaeus Group non-profit that he set up turned out to be "a sham" in the words of witness Pierce.

The prosecutor said there were no separate books or records kept for the Zachaeus Group. He said Kidwell considered its money his own.

He said, "He may be an idiot at finance, but he was good at taking that money, putting it in his pocket, and spending every penny of it."


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