A federal jury this afternoon found Las Vegas businessman Robert Kahre guilty of all his 57 counts of evading taxes, failing to pay over taxes for workers and engaging in fraud during real estate transactions. Three other defendants were found guilty of most, but not all, of their related charges.
Kahre had claimed he tried to legally avoid taxes by creating a cash payroll system that disbursed gold and silver coins, on the theory that recipients could go by the coins' face value for tax purposes. The jury took only a day and a half to deliberate.
After the lengthy verdict was read, federal prosecutors asked Judge David Ezra to order Kahre and Alex Loglia, another defendant, into immediate custody.
But Ezra permitted all four defendants to remain in the community until their sentencings on Nov. 17. The judge spoke directly to Kahre before denying the government's request, asking him for his word that he would not flee the community, nor commit violence nor encourage a "fringe element" to commit violence. Kahre, dressed in casual denim, shook his head yes, that he would abide by the conditions.
"Your Honor," Kahre said when he stood to answer, "This last seventeen years of my life has been to get my issues" aired about taxation and the importance of a gold standard to back U.S. currency. "My life is basically over," Kahre continued, indicating that before sentencing he wants to "spend time with family and tie up some loose ends."
Kahre and co-defendant Danille Cline have four children, with the youngest born during Kahre's 2007 trial on similar charges. That trial had ended in no convictions.
This time, Kahre was convicted in the payroll conspiracy, along with his sister, Lori Kahre, who works for him.
Defendant Alex Loglia, who used to work for Kahre, was acquitted from the conspiracy. Lori Kahre was acquitted of one count but she and Loglia were found guilty of multiple other counts of tax evasion.
Cline was acquitted on two counts of wire fraud in connection with two real-estate transactions, but she was convicted of a third count.
Kahre declined to comment. Several of the defense attorneys said they intend to appeal the verdicts. Jurors, three of whom were crying as the verdicts were read, declined to be interviewed by the Las Vegas Review-Journal.