Monday, January 31, 2011
The evidence showed that, prior to selling the business in 2000, the defendants caused the firm to spend a total of $3.6 million on eight “Loss of Income” insurance policies, the purpose of which was to provide substantial tax deductions to the company and to the owners. ... The evidence also demonstrated that these insurance policies were a sham. The evidence further showed that [the defendants] attempted to conceal their participation in these sham arrangements by establishing offshore nominee entities in foreign countries, such as Nevis.
- National Law Journal, Former In-House Counsel of Buddy's Carpet Gets Prison for Tax Fraud