Judge refuses court-appointed attorneys
Posted: Tuesday, September 04, 2007
PIERRE (AP) -- Essentially telling the couple that they're shysters, a federal judge has refused to provide appeals lawyers at taxpayer expense for imprisoned New Underwood ranchers Randy and Mary Miller.
Randy R. Miller is the son of former Gov. Walter Dale Miller, 81.
Randy and Mary I. Miller pleaded guilty four years ago of failing to pay federal taxes. He also admitted to illegally selling mortgaged wheat and spent 16 months in prison. She was confined to her home for six months.
Both eventually were placed on probation.
But U.S. District Judge Charles Kornmann took away their freedom two months ago by sending the couple to prison for violating the terms of their supervised release.
Randy Miller is being held in a federal prison at Florence, Colo., and Mary Miller is lodged at the women's prison in Pierre. His prison term is 28 months, and her term is 13 months. The pair were locked up in mid-July.
As a condition of their sentences in 2003, Kornmann ordered the couple to pay the Internal Revenue Service $2,000 a month.
Rejecting a recent request for court-appointed lawyers, the judge said the Millers are not poor and can afford to hire counsel. They have $5,000 in monthly income, Kornmann said.
Although the Millers claim they have more debts than assets and that the $5,000 comes from loans from various business enterprises, the judge does not believe them.
"These debts are based primarily upon the fact that they have been drawing $5,000 per month on so-called lines of credit from corporations which they either incorporated or are officers and directors," Kornmann said.
"It is apparent that the defendants have a large cash flow available to them -- cash flow which they have failed to use to pay their obligations to the United States," he added. "They have engaged in various shell games, mischaracterizing income business activities as loans."
Kornmann said the Millers have not paid "a dime" on their taxes but have had money for gambling and entertainment. They also had money to travel for medical treatment in Rochester, Minn., where the Mayo Clinic is located, and they sought court approval to attend a wedding in Colorado, the judge said.
"They have been big spenders except when it comes to their legal obligations," Kornmann said.
The Millers' tax convictions involve Action Travel, a business they owned in Rapid City. Authorities said the couple did not file federal tax returns for their employees. Although the employees' income taxes and Social Security taxes were withheld by the travel agency, those taxes were not sent to the federal government.
A prosecutor said in June that the Millers owe the IRS nearly $650,000 in back taxes plus interest and penalties. The couple until recently failed to file income tax returns for many years, and they blamed accountants, the IRS and others for their problems, the government lawyer said.
The Millers have run about $1 million through bank accounts in recent years and have drawn $5,000 a month in living expenses without paying the IRS, the prosecutor said.
The couple claim that the money spent through their bank accounts was used to pay the expenses of developing real estate for eventual sale. They said they are not able to pay the government.
Kornmann was not convinced.
"The defendants have no credibility, based on their years of fraudulent activities," he said.
Randy R. Miller is the son of former Gov. Walter Dale Miller, 81.
Randy and Mary I. Miller pleaded guilty four years ago of failing to pay federal taxes. He also admitted to illegally selling mortgaged wheat and spent 16 months in prison. She was confined to her home for six months.
Both eventually were placed on probation.
But U.S. District Judge Charles Kornmann took away their freedom two months ago by sending the couple to prison for violating the terms of their supervised release.
Randy Miller is being held in a federal prison at Florence, Colo., and Mary Miller is lodged at the women's prison in Pierre. His prison term is 28 months, and her term is 13 months. The pair were locked up in mid-July.
As a condition of their sentences in 2003, Kornmann ordered the couple to pay the Internal Revenue Service $2,000 a month.
Rejecting a recent request for court-appointed lawyers, the judge said the Millers are not poor and can afford to hire counsel. They have $5,000 in monthly income, Kornmann said.
Although the Millers claim they have more debts than assets and that the $5,000 comes from loans from various business enterprises, the judge does not believe them.
"These debts are based primarily upon the fact that they have been drawing $5,000 per month on so-called lines of credit from corporations which they either incorporated or are officers and directors," Kornmann said.
"It is apparent that the defendants have a large cash flow available to them -- cash flow which they have failed to use to pay their obligations to the United States," he added. "They have engaged in various shell games, mischaracterizing income business activities as loans."
Kornmann said the Millers have not paid "a dime" on their taxes but have had money for gambling and entertainment. They also had money to travel for medical treatment in Rochester, Minn., where the Mayo Clinic is located, and they sought court approval to attend a wedding in Colorado, the judge said.
"They have been big spenders except when it comes to their legal obligations," Kornmann said.
The Millers' tax convictions involve Action Travel, a business they owned in Rapid City. Authorities said the couple did not file federal tax returns for their employees. Although the employees' income taxes and Social Security taxes were withheld by the travel agency, those taxes were not sent to the federal government.
A prosecutor said in June that the Millers owe the IRS nearly $650,000 in back taxes plus interest and penalties. The couple until recently failed to file income tax returns for many years, and they blamed accountants, the IRS and others for their problems, the government lawyer said.
The Millers have run about $1 million through bank accounts in recent years and have drawn $5,000 a month in living expenses without paying the IRS, the prosecutor said.
The couple claim that the money spent through their bank accounts was used to pay the expenses of developing real estate for eventual sale. They said they are not able to pay the government.
Kornmann was not convinced.
"The defendants have no credibility, based on their years of fraudulent activities," he said.
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