Some Ex-Jenkens Partners Lost Capital Cash

Article

Posted Apr 9, 2007, 06:16 am CST
By Debra Cassens Weiss

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.