Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

Tax shelter maven Daugerdas indicted

June 09, 2009

Paul Daugerdas, who reportedly was paid $93 million from 1999 through 2003 as head of the tax shelter practice of law firm Jenkens & Gilchrist, was indicted today on federal tax charges. Six others were also indicted, including two former J&G partners and the former Chairman and CEO of national accounting firm BDO Seidman, according to the Department of Justice press release.

The indictment follows a series of guilty pleas by other figures in tax shelters associated with Mr. Daugerdas. Bloomberg.com reports:

The indictment stems from a wider U.S. probe of illegal tax shelters. On May 8, four current and former executives of Ernst & Young LLP were found guilty by a federal jury in New York of selling illegal shelters to wealthy clients. On June 3, former BDO Seidman LLP Vice Chairman Charles Bee pleaded guilty to federal charges that he helped clients evade more than $200 million in taxes through illegal shelters.

...

Bee’s plea in Manhattan federal court follows that of two other BDO Seidman officials, former Vice Chairman Adrian Dicker and ex-principal Michael Kerekes.

Bloomberg.com says the tax involved in the Daugerdas shelters is alleged to exceed $1 billion. The sentencing guidelines for a conviction with that sort of tax loss would start at 121-151 months.

UPDATE: TaxProf Blog roundup