Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/34

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SI-7085-F

"The activities of this band were a menace to the court and its officers and to the due administration of justice. However, the part of the respondent was not the major one. The pistol was far less serious than the perjury.

"The respondent is sentenced to six months in the county jail of Cook county."

From the testimony of witnesses Shumway, Frank Pope, Ben Pope, La Cava and Penovich, Exhibits Nos. 6- 6-A, 39, 40, 41 and 42 it was found that the profits of the gambling business known as the Hawthorn Smoke Shop in Cicero, Illinois, as shown by the gambling record, Exhibit 5, covering the years 1925 and 1926 were divided as follows:

Frank Pope 18%

Peter Penovich, Jr. 5%

Ralph Capone 5%

Cicero Town Officials for graft protection 20%

Al Capone 52%

Based upon the statements of the taxpayer through his attorney, Exhibit No. 19, that he received one-sixth of the total income from the syndicate, his taxable income was fixed at one-sixth of all bank deposits and funds handled by the syndicate principals, Jack Guzik, Ralph Capone and Frank Nitto during the years 1925 to 1928, plus one-sixth of the bank deposits of Sam Guzik for the years 1927 and 1928. A schedule setting forth the income and a computation of the tax for the years 1925 to 1929 is attached as Exhibit No.44. Sam Guzik was a member of the syndicate and pleaded guilty to evasions of income taxes. He stated that the funds handled in his bank accounts were monies collected by him for other members of the syndicate. He is a younger brother of Jack Guzik and handled collections from slot machines and other illegal activities of the organization. Sam Guzik served a sentence of one year at the Federal Penitentiary at Leavenworth for the evasion of income taxes as a result of a case developed during this investigation.

There are submitted herewith as Exhibits 45 to 74, ledger sheets of know bank accounts of Jack Guzik and a cashier's check showing total funds handled by him as follows:

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