In the fall of 1934, Annenberg purchased the defunct Miami Beach Tribune, moved operations to Miami, and relaunched it as a tabloid called the Miami Tribune. In an asset swap involving cash, Annenberg sold it to John S. Knight, owner of the Miami Herald, for $600,000 and the Massillon Independent, a profitable newspaper based in Massillon, Ohio. The last edition was published on December 1, 1937, and then the Miami Tribune was absorbed by the Herald.[5]
The assets of his publishing company, the Cecelia Corporation (named after his wife) became the foundation of Triangle Publications, which was created in 1947 by his son Walter to hold his and his sisters' inherited assets.
Tax evasion case
During the Roosevelt administration, he was indicted for tax evasion on August 11, 1939, for income tax evasion for the years 1932–1936, totaling $3,258,809.97 in income taxes evaded.[6][page needed] On April 4, 1940, Annenberg pleaded guilty to the 1936 income tax evasion count in the indictment that charged him with evading $1.2 million in taxes ($26.7 million today).[7][page needed]
Judge James Herbert Wilkerson, the same judge who previously sentenced Al Capone, sentenced Annenberg to three years in prison and a fine of $8.0 million ($174 million today) "the largest single tax fraud penalty in history" at the time.[7]
Personal life
Annenberg married Sadie Cecillia Freedman (1879–1965). They had one son, the publisher and philanthropistWalter Annenberg, and seven daughters;[8] Diana Annenberg (1900–1905), Esther Annenberg Simon Levee (1901–1992), Janet Annenberg Kahn Neff Hooker (1904–1997),[9]Enid Annenberg Haupt (1906–2005),[10] Lita Annenberg Hazen (1909–1985),[11] Evelyn Annenberg Jaffe Hall (1911–2005),[12] and Harriet Beatrice Annenberg Ames Aronson (1914–1976).
^Irey, Elmer L. (1948). Slocum, William J. (ed.). The Tax Dodgers. New York: Greenberg. ASINB002DIUAAW.
^ abFolsom, Robert G (2010). The Money Trail: how Elmer Irey and his T-Men brought down America's criminal elite. Washington, D.C.: Potomac Books. ISBN978-1597974882.
Fried, Albert. The Rise and Fall of the Jewish Gangster in America. New York: Holt, Rinehart and Winston, 1980. ISBN0-231-09683-6
Johnson, Curt and R. Craig Sautter. The Wicked City: Chicago from Kenna to Capone. New York: Da Capo Press, 1998. ISBN0-306-80821-8
Reppetto, Thomas A. American Mafia: A History of Its Rise to Power. New York: Henry Holt & Co., 2004. ISBN0-8050-7798-7
Schatzberg, Rufus, Robert J.Kelly and Ko-lin Chin, ed. Handbook of Organized Crime in the United States. Westport, Connecticut: Greenwood Press, 1994. ISBN0-313-28366-4
Winter-Berger, Robert N. The Washington Pay-Off: An Insider's View of Corruption in Government. New York: Dell Publishing, 1972.