Joe Banister - The Banister/Thompson Case

The Banister/Thompson Case

In 2004 Banister was charged with one count of conspiracy to defraud the United States and various counts of willfully aiding, assisting counseling and procuring the filing of a false amended income tax return in connection with his alleged assistance of a client, Walter Allen Thompson. Thompson owned and operated Cencal, an aviation and flight bag manufacturing business. Cencal employed a number of hourly wage workers who were predominantly seamstresses, production workers and office workers. In July 2000, Thompson removed all of the employees from the taxpayer rolls by no longer withholding employment taxes from wages and salaries, by not filing Forms 941, and by not providing employees or the IRS with annual wage or other income statements, Forms W-2 or 1099.

Thompson was charged numerous tax-related offenses. On January 28, 2005, he was found guilty of two counts of knowingly filing false claims against the United States under 18 U.S.C. § 287, ten counts of willful failure to collect and turn over taxes under 26 U.S.C. § 7202, and one count of willfully filing a false income tax return under 26 U.S.C. § 7206. Thompson was acquitted on one count of conspiracy to defraud the United States under 18 U.S.C. § 371. Thompson was sentenced to serve 72 months in prison and was fined $7,500. The case against Banister continued, and Banister was eventually acquitted of the charges against him.