Cleveland musician/minister Phil Driscoll and his wife, Donna Lynne, leave Federal Court on Wednesday after an arraignment on tax evasion charges. Click to enlarge.
photo by John Wilson
Gospel musician and minister Phil Driscoll of Cleveland, Tenn., pleaded not guilty to tax evasion charges during an appearance in Federal Court in Chattanooga on Wednesday afternoon.
Driscoll had no comment after the brief appearance before Magistrate Susan Lee, but he earlier said the matter involves a longstanding dispute with the IRS.
Also pleading not guilty were his wife, Donna Lynne Driscoll, and mother-in-law, Annie Christine McDonald Blankenship.
A trial date was set for Nov. 2.
Attorney Tom Dillard of Knoxville said he will ask that it be declared a complex case and be given additional time to prepare.
The three defendants are free on $50,000 bond each. In Federal Court, a defendant does not actually have to post bail, but is subject to forfeiting the amount by non appearance.
Prosecutor Bill Mackie said the charges each carry up to five years in prison and a fine up to $250,000.
They are each charged with conspiracy to evade taxes and tax evasion for 1996, 1998 and 1999.
It was charged that over $1 million was diverted from tax-exempt ministries for personal use.
Driscoll, who travels widely making public appearances, was told he cannot leave the continental United States. He was required to surrender his passport.
A motion filed by Driscoll's attorneys asking for more time says the indictment charges three defendants, spans 10 pages and alleges four counts. It says the indictment alleges a conspiracy spanning approximately nine years.
Attorneys said the Internal Revenue Service has been investigating the Driscolls for at least four years.
The motion says evidence in the case is contained in approximately 25 banker’s boxes.