Probe of questionable tax shelters brings 7 indictments
NEW YORK -- The former CEO of tax-consulting firm BDO Seidman and an ex-tax adviser at the former Dallas law firm of Jenkens & Gilchrist were among seven defendants indicted Tuesday for allegedly marketing phony tax shelters to wealthy clients trying to duck the IRS.
A federal grand jury voted criminal conspiracy and tax-evasion charges against Denis Field, 51, former head of BDO's national tax practice, and Paul Daugerdas, 58, a former head of Jenkins & Gilchrist's Chicago office, federal prosecutors said.
Also charged were Erwin Mayer, 45, and Donna Guerin, 48, attorneys formerly of the Jenkens firm's Chicago office; and Robert Greisman, 48, a former BDO tax partner in Chicago. The indictment also accused Raymond Brubaker, 53, and David Parse, 47, former investment representatives at the New York office of an unnamed foreign bank, where the scheme was allegedly structured and implemented.
The 27-count indictment accused the seven and others of participating in a scheme to defraud the IRS from 1994 through 2004. Prosecutors charged the group created financial documents to maximize the appearance that the shelters were used to generate profits — and minimize the chances the IRS would discover the deals were actually designed to generate unwarranted tax losses and deductions.
Prosecutors said one of the improper transactions, known as "Homer," generated more than $400 million in false and fraudulent tax losses for at least 36 wealthy individuals when it was marketed and sold in 2001.
"Dishonest and fraudulent tax professionals ... should stand up and take note" of the charges, said John DiCicco, acting assistant attorney general of the Justice Department's tax division.
Field's lawyer could not immediately be located for comment. Daugerdas "believes that the tax advice provided to his clients was well within the scope of then-existing federal tax law," and will "vigorously defend himself," according to a statement by his legal team.
Greisman's attorney, Sheldon Zenner, declined to comment. Lawyers for the other defendants said their clients had done nothing wrong and would be cleared.
