find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Corporate Lawyer
Category: Generalists - In House | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· 12 months fixed term opportunity
View details
Property lawyer - Melbourne
Category: Property Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Impressive client list, national firm · Well-led and high-performing team
View details
US lawyers jailed for dodgy referral fees

US lawyers jailed for dodgy referral fees

Two American lawyers have received jail terms for fraudulently collecting referral fees related to a tax shelter scheme. One of the law firms involved in the scheme, Jenkens & Gilchrist,…

Two American lawyers have received jail terms for fraudulently collecting referral fees related to a tax shelter scheme.

One of the law firms involved in the scheme, Jenkens & Gilchrist, disbanded three years ago after it admitted its part in a number of fraudulent tax schemes that involved over US $1 billion in false deductions.

Chicago attorney and accountant John Ohle was found guilty of wire and tax fraud conspiracy and two counts of tax evasion. He faces a maximum of five years jail for each charge.

William Bradley, a Louisiana based lawyer, was found guilty of wire and tax fraud conspiracy for being part of a scheme that included Ohle to fraudulently obtain fees from tax shelters sold by the bank. He faces a maximum sentence of five years.

Both men are due for sentencing in early September.

Ohle was a supervisor with Bank One's "Innovative Strategies Group" which advised tax shelter strategies for high net worth clients. Ohle and others within the group hired attorneys from Jenkens & Gilchrist to help design, market and implement the strategy.

Bradley was convicted for helping to create false invoices to obtain referral fees for himself in the vicinity of $25,000. Ohle received over $800,000 of fraudulent referral fees.

Prosecutors alleged that Ohle conspired with lawyers at Jenkens & Gilchrist between 2001 to 2004 to market a tax shelter, dubbed "Homer", to help wealthy clients reduce or eliminate their income tax fees.

The high net-worth individuals were clients of both Bank One and Jenkens & Gilchrist.

The Homer transactions resulted in over $530 million being falsely claimed in tax losses and evasion, with Jenkens & Gilchrist earning over $12 million in fees as a result of this scheme.

This case follows a similar allegation of tax fraud being brought against the firm last year.

In 2009, the former head of the Chicago office of Jenkens & Gilchrist, Paul Daugerdas, was charged with matters relating to the creation of fraudulent tax shelters between 1994 to 2004. It was alleged that between 1998 to 2002, Daugerdas earned around $96 million for helping to market the shelters.

The firm paid $81.6 million to clients in 2005 who had sued it over its tax shelter advice.

Jenkens & Gilchrist itself escaped prosecution when it admitted in March 2007 that it had developed and marketed tax shelters that claimed more than $1 billion in false losses. The firm, which also had an office in Dallas, shut-down shortly afterwards.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

US lawyers jailed for dodgy referral fees
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Warning
Aug 23 2017
NT Law Society sounds alarm on mandatory sentencing
The Law Society Northern Territory has issued a warning over mandatory sentencing, saying it hasn’...
Unite
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by The way we do business, where we work, how we engage with workers, even how we take a...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...