Al Capone Mabel Walker Willebrandt recognized that mob figures publicly led lavish lifestyles yet never filed tax returns, and thus could be convicted of tax evasion without requiring hard evidence to get testimony about their other crimes. She tested this approach by prosecuting a South Carolina bootlegger. In 1927, the Supreme Court ruled in "United States v. Sullivan" that illegally earned income was subject to income tax; Justice Oliver Wendell Holmes Jr. rejected the argument that the Fifth Amendment protected criminals from reporting illegal income. The IRS special investigation unit chose Frank J. Wilson to investigate Capone, with the focus on his
Ralph Capone Press described Capone as "…in his own right … one of the overlords of the national syndicate which controls gambling, vice, and other rackets". In actuality, Ralph held relatively little power in the Outfit and the National Crime Syndicate. This finally became evident during his testimony before the U.S. Senate Kefauver Committee, in 1950. In the 1930s, Capone purchased a home and later was a silent partner in a hotel/tavern in Mercer, Wisconsin. The hotel was named "The Rex Hotel" and the tavern was named, "Billy's Bar." After Capone's release from prison, he moved to Wisconsin and lived there until