With just over a month left in U.S. President Joe Biden's term, a pair of advocacy groups this week launched a campaign urging the outgoing Democrat to commute the sentence of an Internal Revenue Service contractor serving five years in prison for exposing tax dodging by wealthy Americans including Republican President-elect Donald Trump.
The campaign, which is a collaboration between the Revolving Door Project and Patriotic Millionaires, is planning a week of action to push Biden to commute the five-year sentence of Charles Littlejohn—who was also ordered to pay a $5,000 fine after pleading guilty in October 2023 to unauthorized disclosure of tax returns and return information to media outlets—to 10 months, the maximum term of imprisonment he was supposed to receive under the federal guidelines.
On Monday, the Washington, D.C.-based Institute for Policy Studies (IPS) published a letter to Biden from four tax law professors calling on Biden reduce Littlejohn's sentence, which the experts called "particularly harsh in comparison with some recent sentences meted out to blatant tax evaders."
The letter asserts that Littlejohn—who gave The New York Timesinformation on Trump and shared with ProPublica data on Jeff Bezos, Michael Bloomberg, Warren Buffett, Bill Gates, Rupert Murdoch, Elon Musk, Mark Zuckerberg, and others—acted "out of a sincere belief in the public's right to know."
University of Michigan law professor Reuven Avi-Yonah, the letter's lead signer, has called Littlejohn a "public hero."
According to the professors:
There are many cases that involve massive tax evasion and do not lead to a criminal indictment. Consider for example the case of Alon Farhy, who transferred more than $2 million to a sham foreign entity, which then transferred the funds to a bank account in the name of a Belize-based corporation Mr. Farhy created solely for that purpose. Mr. Farhy's scheme violated a variety of tax-related obligations beyond his duty to correctly report and pay the income tax he owed. The [U.S. Department of Justice] entered into a nonprosecution agreement with Mr. Farhy immunizing him from criminal prosecution in exchange for paying his taxes plus interest and penalties.
"Many other cases involving tax evasion do not result in jail time," the letter notes. "For example, Raj Mukhi ran a business that manufactured and sold professional uniforms in many countries. He was indicted in 2014 for hiding the proceeds in a private bank based in Zürich. He pleaded guilty to one count of filing a false tax return and one count of failing to disclose a foreign bank account and was sentenced to three years of supervised release."
"Even if there is a prison sentence, it is usually much shorter than five years," the professors stressed. "To mention just some cases from this year, an Oklahoma man who instructed a payroll company working with his business to falsely characterize over $2.6 million as reimbursements rather than income was sentenced to 30 months."
"An Indiana woman who electronically filed false income tax returns for clients that reported fictitious businesses and also filed a false tax return for herself that underreported gross receipts from her business was sentenced to 21 months," the letter adds. "A New Jersey man was sentenced to 29 months for evading taxes and not filing income tax returns while earning over $2.5 million in wages. All of these cases involve conduct that is much more culpable and less public-spirited than Mr. Littlejohn's."
"There is a big difference between leaking tax information and tax evasion in the size of the universe of potential violations and the number of violators escaping punishment," the professors said. "The universe of potential violators leaking tax information is infinitesimal compared to the universe of potential tax evaders. And the number of potential violators escaping punishment for leaking tax information is close to zero, whereas the number of evaders escaping punishment is huge."
As his term winds down, Biden has issued approximately 1,500 commutations and 39 pardons, including controversial clemency for his son Hunter Biden and Michael Conahan, a former Pennsylvania judge convicted in a "kids-for-cash" scheme in which he and a colleague funneled thousands of juveniles into private detention centers in exchange for millions of dollars in kickbacks.
With the looming return of Trump—who presided over more federal executions during his first term than numerous presidents did over several preceding decades—advocates are pushing Biden to commute the sentences of 40 federal death row inmates. Advocates are also calling on Biden to pardon figures including Indigenous activist Leonard Peltier and environmental attorney Steven Donziger.
Earlier this month, Politico Magazine reported that Biden is weighing preemptive pardons for numerous public officials who could be targeted by Trump—who has vowed to exact revenge on his political enemies—during his second term. Kash Patel, Trump's pick to head the Federal Bureau of Investigation, has threatened to prosecute the president-elect's political opponents and journalists.