When he was arraigned last July, civil rights attorney Stephen Yagman wore shoes adorned with the skull and crossbones and turned the traditional "not guilty" plea upside down by pleading "presumed innocent."
But Wednesday, a more subdued Yagman, in a gray suit and tie, showed deference to the federal justice system he so often criticized as his trial for tax evasion and bankruptcy fraud began.
The combative litigator, famed for his police abuse cases, sat quietly as Assistant U.S. Atty. Beong-Soo Kim told jurors that Yagman hid his assets -- including his 2,800-square-foot Venice home -- from tax collectors.
"He gave his house to his girlfriend for nothing," Kim said. "Not even a penny."
Yagman is accused in a 19-count indictment of money laundering and committing bankruptcy fraud to avoid paying more than $200,000 in state and federal taxes.
He has alleged in court filings that the case is a "vindictive prosecution" based on his "contentious history with federal law enforcement agencies."
Yagman has relentlessly criticized federal law enforcement, prosecutors and judges for allegedly failing to uphold civil rights laws, particularly in matters of police abuse. Recently, he has sought writs of habeas corpus on behalf of Guantanamo Bay detainees.
In court documents, Yagman's lawyer Barry Tarlow noted that his client previously tangled with the two law enforcement agencies investigating him. As a special prosecutor, Yagman investigated the FBI in the Ruby Ridge shootings. And he sued the IRS in 1994 over violent conduct by an agent and won a $650,000 settlement.
U.S. District Judge Stephen V. Wilson refused to dismiss the case based on the allegations but has allowed the defense to question the motives of the federal agents who launched the inquiry.
If the pretrial motions and opening statements are an indicator, Yagman's team, led by Tarlow, plans to challenge nearly every aspect of the investigation.
Generally, prosecutors' opening statements are longer than the defense's. On Wednesday, Kim's opening statement ran about 45 minutes, while Tarlow's went well beyond three hours.
As is common in financial prosecutions, the facts of the case are not so much in dispute as what they mean.
For every piece of evidence Kim used in an effort to show that Yagman had purposely concealed his assets, Tarlow raised an alternative explanation for the transaction.
