Paul L. Caron

Tuesday, October 25, 2016

Chicago Tax Lawyer Reaps $30 Million From 900 Whistleblower Lawsuits Against Internet Retailers For Failing To Collect State Taxes On Purchased Goods

ABA Journal, Chicago Lawyer Has Filed More Than 900 Qui Tam Actions Against Internet Retailers:

Chicago lawyer Stephen Diamond has made a business out of filing qui tam cases accusing internet retailers of failing to pay correct taxes to the state of Illinois.

Diamond and his law firm have filed more than 900 qui tam cases in Cook County, Illinois, courts and obtained nearly $30 million in settlements over a 15-year period, Bloomberg Big Law Business reports. Diamond’s share of the proceeds is $11.6 million, which includes his share of the settlements, attorney fees and costs. ...

Diamond and his law firm buy hundreds of products from online retailers to determine if they are paying proper taxes, according to the story. When there are alleged violations, Diamond sues under the Illinois False Claims Act. Like eight other states, Illinois permits whistleblower cases for alleged tax code fraud, the article says, citing information from the Taxpayers Against Fraud Education Fund.

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Qui tam is outsourced civil forfeiture. It should be abolished.

Posted by: AMTbuff | Oct 25, 2016 1:22:08 PM

Good for him!

Posted by: Old Ruster from JD Junkyard | Oct 25, 2016 2:06:44 AM