It was no use. On April 6, 1951, Cohen and LaVonne were indicted on charges of allegedly evading $156,000 in income taxes between 1946 and 1948. The maximum penalty faced by the couple was twenty years in the federal penitentiary system. Still, Cohen seemed remarkably confident. On the day of the bail hearing, Mickey showed up without an attorney and, to the chagrin of Asst. U.S. Attorney Ray Kennison, convinced U.S. District Judge William Mathes to set bail at a mere $5,000. A trial date was set for early June. But there was one more spectacle scheduled before then.
Mickey was now hard-pressed for cash. The government had frozen access to the various safety deposit boxes he’d opened (under various aliases) across town. Worse, Mickey had to demonstrate to the court that the money for his defense was coming from legitimate sources. So Cohen sought out Marvin Newman, auctioneer to the stars, who in turn placed an ad in the
In truth, Cohen was in desperate shape. Sam Rummel, Cohen’s longtime attorney who had delivered him from every previous legal scrape, was dead. Rummel’s partner, Vernon Ferguson, was dying of brain cancer. Harry Sackman, Mickey’s longtime accountant, had turned state’s witness (though he did die suddenly of a [natural] heart attack before the trial began). In short, Cohen was going to trial utterly unprepared.
The trial began on June 4, with the prosecution asserting that it would show that Cohen had spent some $340,000 between 1946 and 1948. To the press, Mickey displayed the old bravado, confidently predicting at the end of the trial’s first day that he would “beat the rap.” Perhaps he really was confident. But this time, Mickey misunderstood the odds. In previous cases, such as the one recently brought against Cohen and his minions in connection with the beating of the widow-robbing radio repairman Al Pearson, Cohen had been able to present himself as something of a Robin Hood (or plead self-defense). This time, his lavish lifestyle was on trial. To secure a conviction, all the U.S. Attorney’s Office had to do was persuade jurors that Cohen had “willfully” avoided paying his taxes.
The prosecution’s strategy for doing this was simple: parading witnesses before the grand jury to testify about Cohen’s profligate spending in the late 1940s. All told, more than a hundred people were called. Furrier A. Lispey recounted delivering a $3,000 mink and a $2,400 marten cape to LaVonne. A maitre d’ was brought in to recount a $600 tip. An Italian shoemaker was brought in to tell the jury about how he custom-made “two or three” pairs of shoes a week for Mr. Cohen at a cost of $65 a pair (and up). Bail bondsman Louis Glasser testified that Cohen’s house and lot in Brentwood was worth a quarter of a million dollars. John O’Rourke, whose testimony in Miami before the Kefauver Committee had done so much to put Mickey in the feds’ crosshairs, was also brought in to testify. He now claimed that Mickey had won between $60,000 and $70,000 from him in the past three years.
Perhaps the hardest to bear of all, though, was the prosecution’s final witness—LaVonne’s interior decorator. “This woman,” Cohen would later rant, “who many claim robbed me of $40,000 or $50,000, got on the stand and finished me off exactly as the prosecution wanted the job done.”
At the end of each witness’s testimony, prosecutors added to a running chart of Cohen’s spending. As the numbers climbed higher—Cohen’s spending for 1947 added up to $180,000, a figure considerably higher than the $27,000 declared on his taxes—Mickey could feel the jury turning against him. His new attorneys seemed unable to stop the bleeding. Mickey tried to say that he’d lost large sums to O’Rourke in Miami as well, but O’Rourke denied it. He insisted that he never won more than a thousand dollars or so from Cohen. Attempts to assert that other expenditures had been reimbursed (and thus should not count as expenses that pointed to a large undeclared income) were likewise unsuccessful. Meanwhile, the prosecution produced evidence that Cohen had safety deposit boxes registered under fake names and stuffed with cash all over the city, Prosecutors portrayed them as further evidence of willful tax avoidance. Things were going so poorly for the defense that one day a reporter pulled Cohen aside and asked him if he knew what he was doing. The impression from the gallery, the reporter said, was that Mickey “was being thrown to the lions.”