Tax-Fraud Trial Begins for Minister-Lawmaker

In a courtroom filled with supporters, a congressman who is also a clergyman went on trial Monday for allegedly taking money from his church, depositing it in his own accounts and failing to report it at tax time.

The trial of Rep. Floyd H. Flake (D-N.Y.) and his wife is being closely watched, not only by his congregation and political supporters, but also by blacks across the country, some of whom see a pattern of investigations of elected black officials.

“This case is about tax evasion and fraud,” Assistant U.S. Atty. Andrew M. Luger told the jury in opening statements. “These defendants accumulated almost a quarter of a million dollars that they intentionally failed to report on their federal income tax returns.”

Flake pleaded not guilty in August, and three months later was overwhelmingly reelected to a third term in the House.

Prosecutors allege that Flake and his wife, Margarett, used funds from the Allen African Methodist Episcopal Church, one of the largest black congregations in the city, as their own and failed to report the money as income.

But defense lawyer Gustave H. Newman presented a portrait of a dedicated, hard-working minister who has devoted his life to his church and community.

“The evidence will show an innocent belief on the part of this man and his wife that they did nothing wrong,” Newman said in opening statements.

The Flakes are both accused of conspiracy, embezzlement and tax violations. The most serious charges--fraud and embezzlement--are each punishable by up to 10 years in prison. Flake faces 17 counts; his wife faces nine. The government is also seeking millions of dollars in fines and forfeitures.

The government charges that the Flakes diverted more than $140,000 from the congregation and from federal housing funds between 1983 and 1989. They are also accused of not reporting some $45,000 in church bonuses as income.