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SELLING TAX SHELTERS AS RICO VIOLATION
July 11, 2007
When you choose to go to court rather than settle, it's always a gamble. An attorney who helped sell tax shelters dreamed up by former Jenkins and Gilchrist Attorney Paul Daugerdas lost his bet last week.
William Bradley got involved in marketing tax shelters involving foreign exchange options, which makes me think it is similar to the "COBRA" tax shelter. After the shelter business tanked, Mr. Bradley was sued in a civil RICO action along with Mr. Daugerdas and other defendants. Only Mr. Bradley failed to settle. The court ruled him liable for up to $6,432,000, plus attorneys fees, under the RICO treble damages regime.
The Moral? If you're litigating against triple damages, you better feel pretty good about your case.
Link: DUCOTE JAX HOLDINGS, L.L.C
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