LexisNexis® Legal Newsroom
Workers' Comp Fraud Blotter (8/11/2011) – Police Officer Made a Mint Running His Memorabilia Business While On Disability

Each week we'll be surveying what the media, state agencies, insurance companies, and others report in terms of workers' comp fraud. Just like a police blotter, our workers' comp fraud blotter lists recent arrests, charges, convictions and investigations. Workers' Comp Fraud...

Concerns and Strategies in Parallel Investigations

One of the risks in eggshell civil audits -- where risk of criminal prosecution is material -- is the possibility of parallel investigations. Parallel investigations are simultaneous civil investigations and criminal investigations. These can involve the same agency and cooperating agencies (such as...

Tax Protestors Alive and Well and Living in Canada

The tax protestor movement is alive and well in Canada and getting some publicity just in time to serve as a warning to Canadian taxpayers readying their annual returns.* I read with interest the recent case of Russell Porisky and his wife Elaine Gould , who ran a tax evasion counseling scheme out of...

Pastor Going to Trial for Tax Charges Predicted Jesus Would Come On May 27

I have previously blogged on Ronald Weinland. See Controversial Pastor, Self Proclaimed Prophet, Indicted re Income from Church Offerings and Offshore Accounts (11/21/11), here . My impression from afar is that he is just a charlatan (see here ) in the guise of a religious person. Just in case he has...

New Indictment of U.S. Tax Return Preparers & Enablers re Offshore Bank & Related Activity

In a First Superseding Indictment, here , filed June 14, 2012 in CD CA, three principals of a tax return preparation service, United Revenue Service ("URS") were indicted. The DOJ Tax Press Release is here, Three Tax Return Preparers Charged With Helping Clients Evade Taxes By Hiding Millions...

Tax Court Finds IRS Compliance Officer Liable for Civil Fraud Penalty

Readers interested in the risks of being audited with respect to income tax noncompliance arising from foreign assets (particularly financial accounts) often ask what it takes for the IRS to prove fraud. I am aware of no standard litmus test of civil tax fraud that will identify, particularly for laymen...

Defendant Waives Attorney-Client Privilege by Asserting Reliance on FBAR Advice Defense

In United States v. Kerr, 2012 U.S. Dist. LEXIS 98836 (D AZ 2012) , a case with two U.S. taxpayers and their lawyer as defendants, the court held that the indicted U.S. taxpayers' claims of reliance constituted a waiver of their attorney-client privilege with respect to communications with their...

Tax Court Finds Fraud Based, in Part, On Negative Inference from Fifth Amendment Assertion

In Loren-Maltese v. Commissioner, T.C. Memo. 2012-214 , the Tax Court introduces the legal issues as follows: It's the facts that make this case interesting, but there are three issues of law that color its background: the general rules of tax fraud, the proper tax treatment of money taken by...

Court Rejects Claim of Ineffective Assistance of Counsel for Failure to Assert Sex Addiction to Mitigate Sentence

The old adage that sex sells seems not to account for the wild popularity of the tax law. Tax law just has no sex in it. But every now and then, sex rises up in tax cases. And, so it did in Carroll v. United States , 2013 U.S. Dist. LEXIS 23769 (ND OH 2013). In a six-count information, Carroll was...

Supreme Court Reminds that Judges Should Not Participate in Plea Negotiations

In United States v. Davila , ___ U.S. ___, 2013 U.S. LEXIS 4541 (2013) [ enhanced version available to lexis.com subscribers ], a criminal tax case, here free version , decided June 13, the defendant was charged with multiple counts of tax fraud and conspiracy. As is typical, the Government indicated...

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Corruption, Crime, and Tax Evasion Drained US$946.7 Billion from Developing Countries, Study Finds

Corruption, crime, and tax evasion drained US$946.7 billion from the developing world in 2011, up more than 13.7 percent from 2010—when illicit financial outflows totaled US$832.4 billion – a new study has found. The findings—which peg cumulative illicit financial outflows from developing...

How Many Swiss Banks Will Meet Upcoming Deadline to Participate in Justice Department’s Tax Amnesty Program?

New Year’s Eve Day is the deadline for Swiss Banks to notify the U.S. Justice Department that they are seeking non-prosecution agreements to resolve past cross-border criminal tax under the Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks. The program was announced several...

Pearson Charitable Foundation Settles Charges of Misusing Assets to Benefit Its For-Profit Affiliate

The Pearson Charitable Foundation, a not-for-profit organization that is affiliated with the for-profit education company Pearson, Inc., will pay $7.7 million to settle charges by New York Attorney General Eric Schneiderman that it misused charitable assets in a manner that benefited Pearson, Inc., in...

“Skid Row” Health Care Fraud: Doctor Guilty for Recruiting Homeless to Defraud Medicare and Medi-Cal

In the first case filed in relation to the second major investigation into the illegal recruitment of “Skid Row” homeless people in Los Angeles for unnecessary medical procedures, a La Mirada, California, doctor has pleaded guilty to federal tax charges and admitted participating in a large...

Madoff Brother, Convicted and Jailed, Now is Disbarred

Peter Madoff – Bernard Madoff’s brother – has been disbarred. Just about five years to the day after Bernard Madoff’s Ponzi scheme came to light, just about one year to the day after Peter Madoff was sentenced to consecutive five year terms of imprisonment for each of his admitted...

Former Social Security Administrator Sentenced to Federal Prison for Aggravated Identity Theft, Unauthorized Sale of Stock Certificates, and Tax Evasion

Randolph Hurst, a former assistant district manager for the Social Security Administration in Rhode Island, has been sentenced to 39 months in federal prison for stealing the identity of a Coventry, Rhode Island, man and using his identity to fraudulently sell more than $160,000 worth of stock certificates...

China’s Top Leaders Have Secret Offshore Accounts, ICIJ Reports

Close relatives of China’s top leaders have secret offshore companies in tax havens that help shroud the Communist elite’s wealth, according to the International Consortium of Investigative Journalists. The group said it based its findings on a leaked cache of documents. According to the...

Swiss Asset Manager Charged with Conspiring To Hide Millions of Dollars in Swiss Bank Accounts

Peter Amrein, an asset manager at a Swiss asset management firm, has been indicted in New York on charges that he assisted U.S. taxpayer-clients and others in hiding millions of dollars in offshore accounts from the IRS and evading U.S. taxes on the income earned in those accounts. Manhattan U.S....

Bennington School’s Former President Sentenced to 18 Months in Federal Prison for Tax and Health Care Fraud

Matthew Merritt Jr., 82, of West Stockbridge, Massachusetts, has been sentenced to 18 months in federal prison after his guilty plea to charges that he engaged in a scheme to defraud a health care program and commit tax fraud. U.S. District Judge William K. Sessions, III, sitting in Burlington, also...

Mizrahi Bank Client Pleads Guilty to Filing False Tax Return

The latest in the series of defendants charged with concealing accounts at Israeli banks is Monajem Hakimijoo, also known as Manny Hakimi, of Beverly Hills, California. In fact, he now has pleaded guilty in the U.S. District Court for the Central District of California to filing a false federal income...

‘Free Money’ Among This Year’s ‘Dirty Dozen’ Top Tax Scams

The Internal Revenue Service has issued its annual “Dirty Dozen” list of tax scams, many of which peak during tax filing season as people prepare their tax returns. "Taxpayers should be on the lookout for tax scams using the IRS name,” said IRS Commissioner John Koskinen. “These...

Whistleblower Nets $1.1 Million in False Claims Act Case against Bristol-Myers Squibb

New York has reached a $6.2 million settlement of a whistleblower case alleging that a medical imaging company that made millions of dollars’ worth of sales in New York knowingly evaded New York State and New York City taxes. The whistleblower in the action will receive $1,137,814.80 from the...

Is Section 7202 an Aggravated Felony for Immigration Purposes?

Section 7202, here , criminalizes the following conduct: Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be...