Criminal Tax Case Against Texas Board Certified Attorney Dismissed:
We were hired during the late stages of a criminal tax investigation targeting an attorney certified in real estate law by the Texas Board of Legal Specialization. By the time we were hired, the IRS had completed its investigation and had recommended to the U.S. Department of Justice Tax Division that our client be charged with three counts of tax evasion and one count of money laundering.
We assembled a team that included a financial investigator (former IRS Criminal Investigation Division Special Agent) and a CPA who specialized in accounting procedures for professional practices and aggressively investigated the case. Over a three month period, the professionals involved in defending the client turned away a number of other potential clients in order to devote their time and effort to the client's case, as the IRS and Department of Justice had been working on the case for a number of years.
Diligence paid off and the team identified a number of significant weaknesses in the government's case, including witness credibility issues and alternative interpretations with regard to tax calculations. The team made presentations before trial attorneys and section chiefs at the Department of Justice Tax Division in Washington D.C. and the United States Attorney's Office in Dallas, and ultimately convinced government attorneys to dismiss the case.
Criminal Tax Case Against Business Owner Dismissed:
We were hired by an entrepreneur, with business holdings in the automobile and real estate industries, who was the target of an IRS criminal investigation. We assembled a team that included industry experts and former IRS special agents, and conducted a parallel investigation, which identified a number of problems with the government's case.
The team made skillful presentations to IRS attorneys and attorneys at the Department of Justice Tax Division, and convinced government attorneys to dismiss the case.
Felony Tax Evasion Charges Against CPA Dismissed:
We were hired by a Certified Public Accountant after the IRS had completed a multi-year investigation and recommended to the Department of Justice Tax Division that he be charged with three felony counts of tax evasion. We assembled the appropriate team, and after diligent investigation determined that the defense case had a number of significant weaknesses and that it would not be in the client's best interest to proceed to trial.
The defense team engaged in skillful negotiation with the Department of Justice Tax Division and the local U.S. Attorney's Office, and convinced the government attorneys to dismiss the felony tax evasion counts. Pursuant to a plea agreement, the client pled guilty to one misdemeanor count of failure to file an income tax return, and as part of a global agreement remained eligible to retain his CPA license.
Tax Consulting Company and Founders Targeted in Mail Fraud/Wire Fraud Investigation - Prosecution Declined:
A tax consulting company and its founders were the targets of a federal criminal investigation and faced multiple mail fraud, wire fraud, money laundering and conspiracy counts related to sophisticated state tax minimization strategies that the company implemented on behalf of client companies throughout the United States.
With the help of carefully chosen consulting experts, we conducted a detailed analysis of each of the strategies implemented by our clients. Following the review and analysis of the tax minimization strategies at issue, our experts determined that each strategy, although complex and aggressive, was consistent with a reasonable interpretation of current tax law and authority.
We made a number of presentations to prosecutors and agents and ultimately persuaded the government to decline prosecution.
IRS Audits/Civil Tax Controversies
No Change Determination in IRS Audit of Miniature Horse Business:
We were hired to represent the owner of a miniature horse business during an IRS audit. The IRS took the position that the operation was a hobby rather than a business and that a large refund, claimed by the taxpayer, based on losses during the year at issue, should be denied.
We executed a comprehensive strategy to educate the IRS revenue agent regarding horse businesses generally and the client's business specifically.
Through diligent preparation and skillful presentation we were able to persuade the IRS that the client's miniature horse business was, indeed, a business and not a hobby. The IRS issued a no change determination and the client received the full refund.
No Change Determination in Audit of Business Owner's Tax Return:
We were hired to represent husband and wife entrepreneurs, with business holdings in the fishing and food service industries, in the audit of their income tax return. We worked diligently on the case and obtained a no change determination.
No Change Determination in Audit of Rancher's Tax Return:
We were hired to represent the owners of a ranch business during an IRS audit. The IRS took the position that the operation was not a business and that losses for the year in question should be disallowed. We took steps to educate the revenue agent regarding ranch businesses generally and the client's business specifically. Through skillful presentation and negotiation, we persuaded the revenue agent that the client's operation was a business, and the losses at issue were allowed.
Advised Corporate Executives Regarding Tax Efficient Compensation Packages and Tax Efficient Exercise of Options:
We have helped executive level employees at public and privately held companies obtain the most tax efficient compensation packages possible and exercise options in the most tax efficient manner possible.
Advised Technology Company Founders on Most Tax Efficient Way to Structure an Acquisition:
We were hired by the founders of a technology company to advise them on tax efficient ways to structure an acquisition of their company. We outlined a structure for the transaction that allowed the founders to pay only capital gains (and not ordinary income tax) on their proceeds from the sale.
Advised a Number of High Net-Worth Individuals Regarding U.S. Compliant Offshore Planning Strategies:
We have advised a number of high net-worth clients on the design and maintenance of offshore business entity and trust strategies, which provide preferential tax treatment and asset protection as well as maintain strict compliance with the Internal Revenue Code and United States Department of Treasury Regulations.
Advised a Number of High Net-Worth Individuals Regarding The Use Of Private Placement Life Insurance to Grow Assets in a Tax Free/Tax Deferred Manner and Protect Assets from Creditors:
Private Placement Life Insurance (PPLI) is a variable life insurance product, highly customized to meet the specific needs of the individual high net-worth client, and offered on a private placement basis. The product combines the preferential tax treatment and asset protection features of an insurance product with sophisticated investment vehicles such as hedge funds. We have advised a number of high net-worth clients regarding the use of PPLI.
Trusts, Estates & Asset Protection
Established Comprehensive Trust, Estate and Asset Protection Strategies For a Software Company Founder Following Liquidity Event:
A software company founder sold half of his company to a private equity firm for an eight figure sum. We outlined for the founder a variety of strategies to protect assets from creditors and minimize income, capital gains, gift and estate taxes. We established, implemented and continue to monitor a trust and estate plan that protects assets from creditors and minimizes the impact of income and transfer taxes. The plan also ensures that the client's assets are transmitted to his heirs and beneficiaries effectively and efficiently at the appropriate time.
Advised Founders and Key Managers of an Energy Company on Trust, Estate and Asset Protection Matters Following an IPO:
Following an initial public offering, the founders and key managers of an energy company found themselves in a qualitatively different position with regard to estate planning matters. We provided a number of strategies to protect assets from creditors, minimize taxes and ensure effective and efficient intergenerational transfer of wealth.
Advised High-Net Worth Physician/Medical Practice Owner on Trust, Estate and Asset Protection Matters:
We advised a high net-worth physician/medical practice owner and his wife regarding a variety of strategies for protecting assets and minimizing taxes. We established, implemented and monitor an estate plan that ensures that assets are protected and that effective and efficient intergenerational wealth transfer takes place.
Advised on the Design of a Multiple International Entity Strategy For a Privately Held Multi-National Technology Company:
We advised on the design of a multiple international entity strategy that minimized taxes while maximizing the protection of assets including intellectual property for a British Virgin Islands technology company with a research and development arm in Taiwan, a manufacturing operation in mainland China and headquarters for international distribution in the United States.
Designed a Multi-Entity Strategy to Help a Technology Company Reduce Risk and Protect Important Business Assets:
We were hired to advise a technology company with multiple lines of business on strategies to reduce lawsuit risk. We developed a multi entity strategy that separated the ownership and control of valuable business assets from the operation of high risk business lines.
Helped a Software Company Close Three Financing Rounds:
We assisted a software company close three financing rounds. We focused on finding investors that would be the best fit as capital partners for our client company in addition to raising the amount of money needed by the client.
Helped Technology Company Design the Most Functional and Advantageous Entity Structure:
We designed a technology company entity structure that accomplished the goals of company founders which included disproportionate allocation of income and expenses among entity members, limited personal liability and pass through tax consequences.
White Collar Criminal Defense
Federal Fraud Charges Dismissed Against Attorney/Entrepreneur. Jury Acquits of State Fraud Charges:
We were hired to represent a licensed attorney turned entrepreneur in a federal fraud investigation. The right team of experts and a diligent, proactive approach paid off, and we persuaded federal prosecutors to dismiss the case.
State prosecutors filed charges, and following a trial, a jury acquitted our client of all charges.
Auto Industry Executive Targeted in Fraud Investigation - Prosecution Declined:
An auto industry executive was targeted in a fraud investigation, and faced multiple counts including mail fraud and wire fraud related to accounting practices.
We assembled a team that included industry and accounting experts and former IRS agents. We reviewed the transactions and accounting entries at issues and uncovered a number of significant weaknesses in the government's case. Skillful negotiation and presentation persuaded the government to decline prosecution.
Business Man Targeted in FBI Insider Trading Probe - Prosecution Declined:
A business man first learned that he was the target of an insider trading probe when FBI agents appeared at his business and requested that he speak with them. Wisely, he politely refused and immediately engaged our firm to represent him.
We began by thoroughly debriefing our client regarding his trading activity, strategies and tactics. Next, our team carefully reviewed all relevant trading records and compiled the public information that our client relied upon in making the trades at issue.
We met with agents and prosecutors early in the case, and showed that for each of the trades at issue, our client relied upon public information, and not material non-public information.
The government did not charge our client. By working diligently and proactively, we were able to achieve the most favorable possible result for our client in an efficient and economical manner.
High Profile Entrepreneur Targeted for Structuring, Money Laundering and Tax Evasion - Sentenced to Two Years' Probation:
A successful and high profile entrepreneur was the target of a multi-agency federal criminal investigation and faced hundreds of counts of structuring monetary transactions, as well as multiple counts of money laundering and tax evasion.
We were engaged at the early stages of this investigation and quickly assembled the relevant documents, including bank records, business records and tax returns. Our team of attorneys, forensic accountants and former federal agents reviewed and analyzed the documents and interviewed witnesses.
We met with agents and prosecutors on a number of occasions and showed the government that our client had indeed paid income tax on earnings. Next, we negotiated a plea agreement which called for our client to plead guilty to a single count of failure to file Form 8300, rather than be charged with the multiple counts of structuring and money laundering that the government had been contemplating.
Our client entered a plea of guilty to the single count and the government agreed to bring no other charges.
The pre-sentence report called for an imprisonment range of 30 to 37 months. We filed a motion requesting a sentence below the bottom of the guideline range and presented evidence showing our client's extraordinary character at the sentencing hearing. Our client was sentenced to two years of probation.
Business Owner Acquitted of Structuring Monetary Transactions and Multiple Money Laundering Counts:
Our client was charged in the United States District Court with structuring monetary transactions and multiple counts of money laundering. These charges formed the basis for a criminal asset forfeiture count which the government sought $14,000,000 of our client's assets.
In this highly contested case, our team assembled and analyzed rooms full of documents relating to our client's multiple businesses. We interviewed numerous witnesses and created a compelling trial presentation.
After determining our theory of the case and creating our defense case in chief, we held two mock trials during which we presented our case to mock jurors and listened to their feedback. Following each mock trial, we had a team of jury consultants deliver a report outlining the key strategic implications from the mock juror input. We carefully evaluated the input from the mock jurors and jury consultants, made adjustments to our strategy and fine-tuned our defense presentation.
Attention to detail paid off and our client was acquitted of these very serious charges. Acquittal on the structuring and money laundering charges prevented the government from gaining $14,000,000 in assets through a criminal forfeiture count.
Attorney Turned Entrepreneur Targeted in Multi-Agency Federal Fraud Investigation - Prosecution Declined Then Charged at State Level - Acquitted After Trial:
An entrepreneur was targeted in a multi-agency federal fraud investigation and faced multiple counts of mail fraud, wire fraud and money laundering.
We were engaged early and conducted our own investigation. Next, we had a series of meetings with prosecutors and agents and convinced the U.S. Attorney's Office to decline prosecution.
State authorities indicted our client and we immediately began trial preparation. Diligence and strategy paid off and our client was acquitted following a state trial.
Business Owner Prevails on Criminal Asset Forfeiture Count - Avoids Forfeiture of Over $16,000,000 in Assets:
A federal asset forfeiture task force seized and aggressively sought forfeiture of over $16,000,000 of our client's assets based on allegations of structuring monetary transactions and money laundering.
We were engaged at the early stages and conducted an in depth financial investigation. Our team assembled and analyzed all relevant documents including bank records, business records and tax returns and interviewed witnesses. We then met with agents on numerous occasions and sought to achieve the return of our client's property through negotiation.
The government played hardball, refused to return our client's assets, indicted our client for criminal violations that included structuring and money laundering and sought criminal forfeiture of the assets at issue under the theory that they were connected with the structuring and money laundering charges.
Our attorneys teamed with CPAs and financial investigators to prepare diligently for trial. Hard work paid off and our client was acquitted of money laundering, acquitted of structuring monetary transactions and his assets were not forfeited to the government.
Return of Assets Achieved Through Negotiated Resolution - Criminal Tax Charges Declined:
We were engaged shortly after our clients had assets seized and learned that they were targets of an IRS criminal investigation. At the start of our investigation, we learned that although our clients owned and operated multiple successful businesses, including a busy restaurant, they had very little understanding or sophistication regarding accounting and bookkeeping.
We conducted a very comprehensive investigation that included multiple visits to our clients' businesses, interviews of employees and bookkeepers and analysis of bank and business records. Through investigation we determined that our clients' employees miscommunicated with outside bookkeepers and inadvertently failed to provide bookkeepers with information relating to a portion of revenue and expenses.
We had multiple meetings with prosecutors and convinced them that errors on our clients' tax returns were the result of mistakes rather than the sort of knowing, willful and intentional conduct required for a conviction in a criminal tax case.
We reached an agreement for a favorable partial return of assets. Further, prosecutors agreed that no criminal charges would be brought if our clients would file true and correct amended tax returns. We coordinated with CPAs and oversaw the preparation and filing of amended returns. Before ending our engagement, we assisted our clients with implementing a number of procedures in their businesses that would prevent them from having assets seized or becoming targets of a criminal investigation in the future.
Return of Assets Achieved Through Negotiated Resolution - Structuring and Tax Evasion Charges Declined:
Our client engaged our firm immediately after his assets were seized and he learned that he was the target of an IRS criminal investigation. We contacted prosecutors and IRS special agents shortly after being engaged and learned that the IRS and the United States Attorney's Office were considering charges that included tax evasion and the structuring of monetary transactions.
Our team, which included experienced trial lawyers, CPAs and a former IRS special agent, quickly performed an in-depth financial investigation and had a number of follow-up meetings with agents and prosecutors during which we explained the legitimate business reasons for the pattern of bank transactions. We coordinated with our clients' CPA (who had prepared the returns being scrutinized by criminal investigators) and showed IRS special agents and asset forfeiture task force officers that complex depreciation rules had been properly applied and that the tax returns at issue were accurate and correct.
Prosecutors and special agents agreed that no criminal charges would be filed and agreed to a partial but very favorable return of assets.Print this Page