A Chastened Marvin Mitchelson Uneasy in Defendant’s Chair

Ordinarily, Marvin Mitchelson would be the man parading before a judge or jury, playing advocate for one celebrity or another. The famed attorney would not be the one found sitting quietly at the defense table, writing advisory notes to his lawyer.

But that’s where the white-haired Mitchelson was Thursday, in U. S. District Court as closing arguments began in the 8-week-old trial in which he is accused of federal tax fraud.

It is hard to be on the other side of the fence, said the 64-year-old attorney, who has represented such clients as Joan Collins, Sonny Bono and Roxanne Pulitzer. Before the day’s proceedings began, the man who pioneered the concept of palimony in a case involving the late actor Lee Marvin said, “You have to be stoic, and you pray a lot.”

He was quieter than usual outside court, his trademark flamboyance temporarily subdued. Then, in spite of himself, he argued his cause, the way he could not do for himself in the courtroom.

Prosecutors say the Century City lawyer intentionally did not report nearly $2 million in income on his federal tax returns between 1983 and 1986. They also say he overstated his deductions--including more than $24,000 in payments to a girlfriend listed as “professional fees.”

Mitchelson, who earned more than $1 million during each year in question, does not dispute that there were errors on his tax returns. “I wish I’d done a lot of things differently,” he said, “but then I’d be a bookkeeper or an accountant.”

He blamed his accountant, who appeared as a government witness. “I’m on the road 50% of the time. I have to rely on professionals and accountants,” Mitchelson said. “There’s some mistakes, but there’s no intent on my part.”

Assistant U. S. Atty. Michael Reese Davis put it differently.

“This case has been about theft by deception,” he told the jury. Davis portrayed Mitchelson as a man beset by creditors who “spent money like wildfire” to maintain a luxurious lifestyle. Mitchelson concealed fees--ranging from $5,000 to $500,000--paid by several clients, Davis said, and overstated fees paid to attorneys who assisted him by more than $700,000.

Davis portrayed Mitchelson as living so high he could not afford to pay his taxes or other bills. Bank accounts had negative balances and utilities had threatened to stop service, Davis contended.

Through it all, Davis said, Mitchelson kept spending on “limousines, hotel suites, antiques,” and even bid $1 million for the late Duchess of Windsor’s jewelry. “He’s facing a number of pressures. He is continuing to spend as before,” Davis said.

The government’s charges against Mitchelson followed myriad IRS audits and a three-year investigation, sparked by an informant, according to Assistant U. S. Atty. Gary S. Lincenberg, co-prosecutor in the case.

John Mitchell, Mitchelson’s attorney, did not disguise his client’s lifestyle. “He’s rented suites and has used limousines,” he told the jury. “I’m suggesting to you that suites and limousines are required in terms of his clients. . . . We’re talking about people that require that sort of presentation.”

Mitchell also noted that Mitchelson used his son’s former nanny as his office manager and wasn’t much of an administrator. “He did the best he could. It wasn’t good enough.”

Mitchelson hired business manager and Certified Public Accountant Richard LeRoy to keep his finances in order, Mitchell said. “Mr. Mitchelson is sitting where he is today as a result of his business manager and CPA.”

Mitchelson can only blame himself, Davis said. “Mr. Mitchelson had the ultimate responsibility for what was on his tax returns.”

The case is expected to go to the jury today. If convicted on all charges, Mitchelson could face up to 12 years in prison and a $1-million fine.

Encountering reporters outside court, Mitchelson for once lamented the publicity he had attracted. “I was hoping this would stay a secret,” he said.