U.S. Department of Justice United States Attorney Northern District of California
11th Floor, Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California  94102 FOR IMMEDIATE RELEASE	Tel: (415) 436-7200 Fax: (415) 436-7234

September 5, 2002 Kevin V. Ryan, United States Attorney for the Northern District of California, and Eileen J. O'Connor, Assistant Attorney General for the United States Department of Justice, Tax Division, announced that Donald Ernest Wishart was sentenced today to eight years in prison for tax violations, mail fraud, and obstruction of justice.  Dr. Wishart, age 66 of San Jose, was indicted by a federal grand jury on July 12, 2000. On February 5, 2002, Dr. Wishart was found guilty by United States District Judge Jeremy Fogel on all counts of the indictment: one count of mail fraud in violation of 18 U.S.C. § 1341; one count of submitting a false claim to the United States in violation of 18 U.S.C. § 287; one count of obstructing federal agents in violation of 26 U.S.C. § 7212(a); and four counts of willful failure to file a U.S. Individual Income Tax Return (Form 1040) in violation of 26 U.S.C. § 7203.  The convictions followed a two-week bench trial.  During the trial, the evidence showed that Dr. Wishart traveled to north-central Montana to attend a two-day seminar conducted by the Montana Freemen in December 1995. While at the seminar, Dr. Wishart listened to Freemen members lecture about racism, anti-Semitism and various anti-government tenets.  At the end of the seminar, in exchange for approximately $100, Dr. Wishart received four fraudulent financial instruments styled "Comptroller Warrants" purportedly totaling over $7 million.  The Court found that "those who attended [the] seminars had to know that the [warrants] had no actual value and that, in fact, they were simply a means of trying to put one over on somebody or trying to catch somebody in a snare by inadvertently negotiating the [worthless warrants]." The Court ruled that Dr. Wishart submitted the Freemen warrants for payment to Bay View Federal Bank and at least two government agencies, including the IRS, knowing they were worthless.  Dr. Wishart's mail fraud conviction stemmed from his submission to Bay View Federal Bank of a worthless Freemen warrant with a $1,576,000 face amount.  The evidence showed that Dr. Wishart mailed the warrant in an effort to redeem his foreclosed residence located in Los Altos Hills.  His false claim conviction was based on submission of an additional Freemen warrant in an effort to pay off a prior federal income tax debt, estimated at over $1.3 million. The Court further found that, following his submission of the Freemen warrant to the IRS, Dr. Wishart sought to impede IRS agents in their collection efforts by sending the agents lien documents threatening financial harm totaling $200 million.  This activity was the basis for Dr. Wishart's obstruction violation.  The tax charges stemmed from Dr. Wishart's failure to file income tax returns for the years 1995 through 1998.  The Court ruled that during these years, Dr. Wishart's substantial earnings from his dental practice required him to file returns. Judge Fogel sentenced the defendant to 8 years in federal prison, and ordered restitution in the amount of $876,857.34, as well as a three-year period of supervised release and 100 hours of community service. The restitution is to be paid as follows: $180,947.82 to  Bay View Federal Bank; $275,192.62 to the Internal Revenue Service; and $420,716.90 to the California Franchise Tax Board.  After sentence was pronounced, the defendant was immediately remanded into the custody of the United States Marshal's Service. The prosecution was the result of a six-year investigation by Special Agents of the Internal Revenue Service. Department of Justice, Tax Division Trial Attorneys Thomas S. DiLeonardo and Gregory S. Gordon prosecuted the case with the assistance of Susan Kreider, Legal Technician. A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can.  Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov. All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.