TAXES: Cheated and Deceived

In Manhattan, the trial of Henry Lustig had barely begun when the sky started caving in on the dour little owner of Manhattan's twelve glittery Longchamps restaurants. Unexpectedly, two of his four co-defendants pleaded guilty to conspiring with Lustig to defraud the U.S. of $2,872,766 in taxes on wartime profits.

Brothers Wallace and Martin Platt, Longchamps bookkeeper and office manager, not only pleaded guilty but turned Government witnesses. Wallace Platt took the stand to tell exactly how the huge job of cheating had been done. Said he: Longchamps kept two sets of books, juggled one set by understating sales and...

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