White-Collar Crime

2 Former Jenkens & Gilchrist Partners on Track for Trial in Tax-Shelter Case

Rejecting an argument that the conduct of two former partners of the now-shuttered Jenkens & Gilchrist and three other non-law firm defendants lacked requisite willfulness, a federal judge has denied a motion to dismiss and put the case on track for a February trial.

Charged with conspiring to defraud the Internal Revenue Servivce, ex-partners Paul Daugerdas and Donna Guerin are accused of helping clients generate some $4 billion in losses via bogus tax shelters that were never intended to be profit-making ventures, reports the New York Law Journal in an article reprinted in New York Lawyer (reg. req.).

Meanwhile, the lawyers earned hefty fees for the firm by writing opinion letters that indicated the tax shelters were legitimate.

A third Jenkens lawyer charged in the Southern District of New York case pleaded guilty in October.

Earlier coverage:

ABAJournal.com: “Three Ex-Jenkens Partners Indicted for Work on Questionable Tax Shelters”

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