Sam Moore Trial Day 2

By Rachel DePompa - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) – The government cracked open Sam Moore's tax books in day two of his tax evasion trial. The former Shockoe Bottom strip club owner is accused of not filing his 2007 taxes and of filing false tax returns.

Sam Moore's longtime accountant testified for most of the day.

The accounting details and filings were so complex at times both sides struggled to make clear points.

Club Velvet is now closed. It lost its liquor license last year and Sam Moore sold it.

CPA Greg Jonson told jurors at the federal courthouse, Moore's primary income in the mid 2000's was Club Velvet...and the spot was certainly making money. In 2007 alone, the club generated more than $800,000. That's not including money made by 3 ATM's Moore placed inside the club.

Moore's accountant of 10 years told jurors while keeping the books for the club he could not account for the cash used to fund the ATM's. He said there were tens of thousands of dollars in discrepancies each month.

The CPA also testified, Moore said he funded the ATM's with his own money and with cash collected from cover charges and lap dances.

The government is trying to prove Moore was under reporting his income. Defense attorneys say Moore used money he inherited from his father in 1989 to fund the machines. And that money is not taxable income and would not need to be reported to the IRS.

The account also testified that he prepared Moore's 2007 tax returns but was told not to file them. If convicted of cheating on his taxes Moore faces up to 11 years in prison.

Moore is accused of cheating the IRS out of $290,000 in taxes. His trial is expected to last all week.

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