Jury deadlocks on tax-dodging counts

SANDPOINT — A jury in Coeur d’Alene deadlocked Wednesday on tax-evasion charges against a North Idaho man, but convicted him of failing to file corporate tax returns, U.S. District Court records show.

Jurors hearing the case against Michael George Fitzpatrick began deliberating on Tuesday. Their deliberations concluded on the sixth day of the trial.

Fitzpatrick, who has ties to Sandpoint and Hope, is scheduled to be re-tried on two counts of tax evasion on Nov. 6. His sentencing on the other two counts is set for Dec. 3.

Failing to file an income tax return is punishable by up to a year in prison. The tax-evasion charges have a maximum penalty of up to five years.

Fitzpatrick, 50, is free on conditional release, which includes electronic monitoring. His travel is restricted to Idaho and eastern Washington to consult with his standby legal counsel.

Fitzpatrick formed two companies in 2003 to market and sell debt-elimination products. Prosecutors allege that Fitzpatrick attempted to avoid paying income tax by issuing payments to third parties, moving money outside the country and disguising the ownership of the funds.

Jurors convicted Fitzpatrick of failing to file tax returns for Dynamic Solutions Inc. and NAES Inc.

Fitzpatrick has been acting as his own defense counsel, but has backup counsel to assist him.

Fitzpatrick attempted to recall government witnesses again Tuesday, but Judge Edward Lodge affirmed an earlier denial of the request because he was unable to show that they were necessary to an adequate defense, court records indicate.

Fitzpatrick also moved for a continuance because he filed a writ of mandamus filed with the 9th U.S. Circuit Court of Appeals, but the motion was denied.