find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
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
microphone
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
protest
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Blocked
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
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 & ...