Massachusetts readers may be interested to know that a former attorney was convicted in federal court. Prosecutors called it the biggest case of criminal tax fraud in United States history. The case was based on the claim that he and other men ran a 10-year long scheme that netted one billion dollars in fake losses and $7 billion in phony tax deductions. His co-defendant was acquitted by the jury.
The man was on on trial for a second time on charges of tax evasion, conspiracy and attempting to obstruct the IRS. His first conviction from 2011 was overturned due to the fact that one of the jurors in the trial was dishonest about her background to make herself more appealing as a juror. She claimed to be an alcoholic and an attorney with a suspended license.
In the second trial, he was found to be guilty of seven of the 16 counts he was charged with, including conspiracy and tax evasion. Prosecutors alleged the defendant used shelters to generate fake losses for approximately 931 well-to-do clients. He was among seven people who were indicted in 2009 for selling their clients fraudulent tax shelters. The crimes took place between 1994 and 2004. Two of of the seven defendants entered guilty pleas and agreed to cooperate with the government prosecutors.
Evading taxes and tangling with the IRS is a serious matter that may lead to federal charges. Tax law tends to be a complicated issue that may require specialized services. Sometimes it is possible to settle tax issues with the IRS by creating a payment plan or paying lump sum settlements. A tax law attorney may be able to help those accused of tax fraud fight their charges by investigating the circumstances behind the case. An attorney could also negotiate for a settlement out of court.
Source: Bloomberg, “Ex-lawyer Daugerdas convicted in tax fraud scheme retrial“, Christie Smythe & Bob Van Voris, October 31, 2013