Quellos pleas

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
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Quellos pleas

Post by Demosthenes » Sat Sep 11, 2010 12:57 am

http://seattletimes.nwsource.com/html/l ... on11m.html
Two men pleaded guilty Friday to charges of conspiracy and aiding the filing of a false tax return in what Internal Revenue Service officials have called a "staggering" cheat of the tax system.

Former Quellos Group CEO Jeffrey Greenstein, 48, and his business partner, Charles Wilk, 51, admitted an investment plan they created, called POINT, was a "fraudulent tax scheme" that generated $9.6 billion in fake losses to offset capital gains of its wealthy clients.

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Re: Quellos pleas

Post by Number Six » Sat Sep 11, 2010 6:45 pm

"Prosecutors said that Point, or Portfolio Optimized Investment Transactions, used sham securities transactions to allow their users to shield $1.3 billion in capital gains from federal taxes.

"The judge fined both defendants and ordered them to perform community service. In addition, both still face jail terms of up to six years.

"Mr. Greenstein, a resident of Mercer Island, Wash., will pay a fine of $6.4 million and be required to lecture on business and legal ethics at his alma mater, the University of Washington School of Business."

A $240 million tax fraud case and Greenstein faces only six years maximum in prison.... I thought there were minimum sentences based on the size of the fraud, it looks like the blindfold was taken off lady justice in this case.
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

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