Posted Apr 09, 2007 12:16 pm CDT
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.