Some Ex-Jenkens Partners Lost Capital Cash

Partners who left the troubled Dallas firm Jenkens & Gilchrist after the fall of 2004 did not get their capital contributions back.

Texas Lawyer reports the lawyers may never see a penny, or may get back only part of their cash.

The firm shut down on March 31, after it admitted in a nonprosecution agreement with the U.S. Attorney’s Office for the Southern District of New York that it marketed fraudulent tax shelters at its Chicago office. The firm also reached a civil settlement with the Internal Revenue Service.

“It was probably a disincentive to leave,” one former partner who requested anonymity told Texas Lawyer. He says he lost a capital contribution of about $200,000.

How Midsized Firms Can Land Big Clients

Trial Lawyer Cash Flowing to Obama

We welcome your comments, but please adhere to our comment policy. Flag comment for moderator.

Commenting is not available in this channel entry.