[1] In reviewing the case, the Fifth Circuit Court of Appeals stated: In 1996, Simkanin surrendered his Texas driver's license, and when stopped by the police while driving, he showed a card styled "British West Indies International Motor Vehicle Qualification Card" which he had acquired from a mail-order business in Connecticut.
Simkanin then listed [the bookkeeper] as Arrow's president on various legal documents, although he retained complete de facto responsibility for the company's affairs and continued to make all of the decisions regarding finances and taxes.
In accordance with these views, Simkanin told [his] accountant [...] and others that he was not required to pay taxes and that filing returns was purely voluntary.
Simkanin rejected this advice, and he began to pressure Arrow's employees to attend seminars sponsored by WTP.
On January 7, 2004, he was convicted by a United States federal court on ten counts of willfully failing to collect and pay over employment taxes under 26 U.S.C.
§ 7202, fifteen counts of knowingly making and presenting false, fictitious or fraudulent claims for refund of employment taxes under 18 U.S.C.
However, on June 23, 2010, he was order jailed again, pending a hearing to be held on July 1, 2010, regarding alleged violations of his terms of release.