United States v. Preacely, No. 12-1714 (7th Cir. 2012)
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Preacely pleaded guilty in 2009 to tax fraud, 26 U.S.C. 7206(2). The district court sentenced him to 18 months’ imprisonment to be followed by three years of supervised release, with a special condition, prohibiting him from participating in his former occupation of tax preparer. When the district court imposed the special condition, counsel asked: “may he own the business if he himself does not prepare any taxes himself?” The court responded, “No … you should not engage in the business of tax preparation directly or indirectly.” After his release from prison, Preacely transferred ownership of his business to his wife, but when an undercover IRS agent asked to speak to the vice-president, he was directed to Preacely. The IRS also executed a search warrant at the business and interviewed a number of employees. The district court revoked Preacely’s supervised release. The Seventh Circuit affirmed, rejecting arguments that the condition was unconstitutionally vague and that Preacely was involved only administratively with the business by doing things such as dropping off food, office supplies, and signing paychecks.
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