Convicted State Senator Must Pay Excise Tax on Misused Funds

Former Pennsylvania State Sen. Vincent Fumo (D), who was convicted of dozens of counts of fraud, must pay millions in penalties for misuing a nonprofit to claim tax benefits.

Fumo acted with intent to evade tax, the US Tax Court said, rejecting what Judge Albert G. Lauber called “several implausible and inconsistent explanations about his income and assets.” Fumo used expenses from the nonprofit Citizens Alliance for Better Neighborhoods for personal gain, including money spent hosting parties, on cell phones, vehicles and other services. Excise tax penalties are therefore appropriate, Lauber said.

“As a bank chairman, an attorney, and a ...