Flamboyant Aero-Equipment Maker Gets "Hard Time" For IRS Scam

Al Thompson wanted to succeed in aviation in the worst way... and apparently did just that. The loud-spoken aviation equipment manufacturer (mostly Flight bags, clothing, and the like), had fought a running battle with the IRS over withholding and other financial scams for several years, and after years of court skirmishing, was convicted of Federal offenses and sentenced to six years in Federal Prison.

Thompson, something of a long-term embarrassment to the aviation community, was well-known for a confrontational demeanor and long-rambling oratories about the rights of the Federal Government. But, what got Thompson into trouble was his refusal to pay his income taxes and those of 10 of his employees. Thompson felt just justified in doing so by citing a belief that Federal income tax laws were repealed in 1939. Convicted and sentenced on 13 counts of tax resistance Wednesday, Thompson claimed in pre-sentence interviews that he should not have to serve any time, "I have not committed a crime and there's nothing to convict me on."

Last January, Thompson was convicted on 13 counts of tax resistance, and apparently had not paid his own taxes since 1999... and jeopardized the welfare of several of his employees by failing to file their withholding since 2000. Thompson claimed that, "My first responsibility is to God and the Ten Commandments," in his address to the Judge, US District Judge William B. Shubb.

An earlier statement describing Thompson and a partner in these efforts by United States Attorney McGregor W. Scott noted that, "The blatant and far-reaching defrauding of honest taxpayers by these two individuals warrants an aggressive federal prosecution. This case should serve as a stark reminder to our citizens that caution should be heeded when approached by those advocating wild theories as to why one does not have to obey federal tax laws."

US District Judge William B. Shubb labeled Thompson, who had tried to brand himself as a heroic tax crusader, as an "incorrigible" and suggested that "people looking at Mr. Thompson now need to know you do go to jail. They need to know Mr. Thompson is not their hero. He is going to jail."

The 58 year old Redding California resident, also incurred fines of $7,500 but was not ordered to pay an estimated back-tax bill of $259K. Thompson could have been sentenced to as much as 63 years in prison and a maximum $3.25 million fine.

FMI: www.usdoj.gov/tax/ThompsonComplaint.pdf