“Girls Gone Wild” Founder Claims Ignorance – Mmm, Yeah?

Joe Francis, the rich and troubled founder of Girls Gone Wild, has pleaded not guilty to two counts of federal tax evasion. He claims that he was the victim of a scheme by his accountant to profit from the IRS whistleblower program.

The indictment alleges that Francis claimed over $20 million in phony business expenses on his corporate tax returns for 2002 and 2003. Reportedly, those expenses include $3.8 million for a Mexican vacation home. Francis is also accused of transferring millions of dollars offshore in order to evade taxation.

Francis claims, through his lawyers, that he is being targeted because of the way he makes a living (in case you live under a rock, Francis persuades drunk college girls to bare their breasts on camera, which he later sells to desperate morons). Francis’ lawyer also claims that the Francis’ accountant prepared the returns without showing them to Francis.

Even giving Francis the benefit of the doubt that he didn’t actually see the returns, that’s a ridiculous defense. It’s amazing to me that a person who purports to be a businessman, whose companies earn hundreds of millions of dollars, would choose not to even look at his own tax returns – tax returns that he has a responsibility to review and sign. Sounds suspiciously like a cop out to me.

Of course, who could blame Francis for being a little desperate now… He has spent some serious time in jail already for prostitution and child abuse charges; the jail time was upped when Francis was found with drug contraband in prison. If convicted of these federal tax charges, he faces a maximum of 10 years in prison and fines of up to $500,000.

The oh-so-witty “business man” told the LA Times, “This ain’t Girls Gone Wild. This is the IRS gone wild.” Ahh, poetic.

Francis’ tax trial is set for September 16.

Kelly Phillips Erb

Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.

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