Ex-Greenberg Traurig Partner Pleads Guilty in Tax Shelter Case

[Robbien]

Source: Law

The former chairman of Greenberg Traurig's tax practice pleaded guilty Friday to defrauding the Internal Revenue Service and is cooperating with the government in a tax shelter prosecution.

Jay Ira Gordon, who resigned from the bar in 2006 after revelations he took more than $1.2 million in kickbacks on tax shelters he recommended to wealthy clients, pleaded guilty to a two-count information before Southern District of New York Judge John Koeltl.

Gordon, 51, is cooperating with the government in the prosecution of John B. Ohle III, a Chicago tax specialist who was indicted in November for conspiring with lawyers at Jenkens & Gilchrist to defraud the IRS with bogus tax shelters.

The government alleges in the Ohle case that 36 wealthy clients bought the shelters in 2001. The shelters, which the government contends have no legitimate non-tax business purpose, cost taxpayers as much as $100 million.

. . .

Gordon admitted in an affidavit of resignation from the bar that he did not inform his client or his firm of the more than $675,000 in referral fees he collected.

He also admitted that he asked one tax shelter sponsor to put another $600,000 referral fee in a retainer account at Greenberg Traurig and then converted the money into firm revenue by billing 1,120 fictitious hours. The $526,530 "fee collection credit" he received for the fake billings were considered in his compensation at the firm.

Read more: http://www.law.com/jsp/article.jsp?id=1202426744744

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So much corruption, so few good Attorney Generals to go after all of them.

[pattmarty]

1. I'll tell ya what, if they started prosecuting these ass holes...........

.....like they should and put them in (normal) jails for 5 or 10 yrs, you would suddenly see a HUGE drop in these kind of crimes.

[fascisthunter]

5. the Law no Longer Applies to Most of the Rich

Bush is a living example...


But yes, I agree with you. Ever since Nixon's pardon, this country has exempted most crimes of the political elite and the business men/women who helped finance their campaigns.

[boomerbust]

2. These mofo's

Got huge tax cuts under Bush but still tried to launder the taxes that they owed.:patriot:

[Faygo Kid]

3. I worked there once.

Long time ago, and very briefly. Not surprised; these guys also cozied up to Jack Abramoff.

[TomClash]

4. Another one of them bites the dust

Boo Hoo.

[sarcasmo]

6. These idiots all need to be arrested, cost the tax payers 100 million.

How many more exist?