Friday, September 14, 2012
Following up on my prior posts (links below): Bloomberg: Ex-Lawyer Donna Guerin Pleads Guilty in Tax-Shelter Case:
Donna Guerin, a former partner in the defunct law firm Jenkens & Gilchrist, pleaded guilty in what the trial judge has called the biggest U.S. tax-fraud prosecution in history.
Guerin was initially convicted by a jury in May 2011 with three other defendants of running a 10-year tax shelter scheme that created more than $1 billion in phony losses. Three of the convictions, including Guerin’s, were overturned in June after U.S. District Judge William Pauley found that a juror in the case lied about her past, including that she was an alcoholic and a suspended attorney.
Guerin, 52, pleaded guilty today in Manhattan federal court to one count of conspiracy and one count of tax evasion. Her plea comes as prosecutors are preparing to retry the defendants whose convictions were overturned based on the misconduct of the juror, Catherine Conrad. ... She faces a maximum of 10 years in prison on both counts, the judge said during the hearing. Sentencing is scheduled for Jan. 11. She has agreed to pay $1.6 million in penalties. ...
Guerin said today she worked on tax shelters with Paul Daugerdas, also a defendant in the case, while the two were lawyers at former Chicago-based firm Altheimer & Gray. The two joined Dallas-based Jenkens & Gilchrist in 1998, she said, and continued their work in helping clients shelter income. Guerin admitted to helping advise clients on how to conduct complex transactions that allowed them to wipe out financial gains. Guerin said she also provided opinion letters to her clients helping them assert that the deals were legitimate.
Prior TaxProf Blog coverage:
- Daugerdas, Three Others Convicted in Criminal Tax Shelter Case (May 16, 2011)
- Daugerdas Seeks New Trial in Tax Shelter Case Based on Juror Misconduct (Aug. 16, 2011)
- Judge Grants Daugerdas Hearing on Juror Misconduct in Tax Shelter Conviction (Nov. 15, 2011)
- Suspended Lawyer Lied to Get on Daugerdas Tax Shelter Jury (Feb. 10, 2012)
- Daugerdas Wins New Trial in Criminal Tax Shelter Case Because of 'Pathological Liar' Attorney-Juror (June 4, 2012)