"A former BDO Seidman LLP manager pleaded guilty to criminal charges Tuesday in connection with an allegedly fraudulent tax-shelter scheme that allowed wealthy clients to avoid paying more than $200 million in taxes. At a hearing Tuesday, Adrian Dicker, a onetime BDO Seidman vice chairman and former manager of the firm's defunct Tax Solutions Group, pleaded guilty to conspiracy and tax evasion before US Magistrate Judge Theodore H. Katz. ... Prosecutors alleged Mr. Dicker, who retired from the company in 2000, and served on its board until 2003, worked with others in designing and marketing two fraudulent tax shelters--one known as the 'Short sale' transaction and another known as short options strategy, or SOS. The shelters were designed, marketed and implemented by BDO Seidman and the now-defunct law firm Jenkins & Gilchrist PC, with the assistance of an unnamed foreign bank, the government said. The tax-shelter transactions created more than $1 billion in fraudulent tax losses, prosecutors said", Chad Bray at the WSJ, 18 March 2009.
Why wasn't the bank named? Why is it being protected?
7 comments:
That is a curious question IA... $1 bln is a serious amount of tax losses...
It is laughable that many decry the bankrupt U.S. system yet those who run it are tax cheats. Interesting, the malfeasance of the government knows no bounds. Palin is a tax cheat yet gets to live in the lime light and have continued substantive impact on the lack of justice system that exists in the U.S. Of course the obviousness of Palin’s thievery on taxes is irrefutable just review her tax returns wherein she not only stole from the government she helps run by under reporting income and taking false tax deductions but she cheated the state of Alaska by filing phony expense reimbursement reports (and was actually compensated by the state for staying at her own home). Though Palin’s thievery is nothing in the context of Geithner or Mike Hamersley the high level government tax shelter lawyer who goes around confiscating income from honest citizens. Hamersley is perhaps the worst offender of all as he is a nationally renowned tax crusader who based on his own definition of tax fraud to the U.S. Senate purveyed massive tax fraud against the government he now works for utilizing sham foreign paper transactions to generate 100s of millions of phony tax deductions for his clients at KPMG. Of course KPMG, committed massive corporate tax fraud for its clients like the now bankrupt Citi. Though in defense of KPMG, the massive corporate tax fraud it purveyed pales in comparison to the financial statement fraud it engaged for its banking clients like Citi by falsely clearing balance sheets with Tier 3 sham investments and intentionally misevaluating sham derivative contracts such that the financial system crumbled and the costs to the citizens will run into the Trillions while all the while those that run KPMG like Tim Flynn earn their multimillion salaries from the high audit fees paid by their banking clients for issuing fraudulent financial statements which effectively the American people are now funding since if Citi was allowed to fail, KPMG would be out of business and Flynn would end up in the poor house instead of making millions. It is an awesome system if you are one of those like Flynn pulling the strings and defrauding the American people. Ask Flynn about his fraudulent Bermuda captive insurance company, Park, which is a sham paper company used to generate 100s of millions in phony tax losses for KPMG partners (just like it does for its corporate clients) and cheat future partners out of profits by deferring settlement payments for years through sham contracts devised by Claudia Taft of KPMG.
Thoreau,
Your comments about Hamersely don't make any sense and I am highly skeptical that they could be based on any reliable evidence at all. I read Travails in Tax and personally observed Hamersley’s testimony before the Senate Finance Committee. He seems like an exceedingly honest guy to me. Didn’t KPMG say Hamersely had absolutely no involvement or knowledge of tax shelters in its press release to the Senate Finace Committee after Hamersley testified in October 2003? I read that KPMG press release on the PBS Frontline website. http://www.pbs.org/wgbh/pages/frontline/shows/tax/interviews/release.html
Tax partner, Bernanke said the economy was sound over and over through 2007 to the middle of 2008 (as did many of his henchman), who cares what anyone says? I have copies of Hamersley emails where not only does he participate in his version of backdating a transaction involving the liquidation of an offshore foreign company into another sham offshore foreign company and the sale of stock for $1 to the clients lawyer, all to obtain 10s of millions in phony sham paper tax deductions. Hamersley even goes so far as to opine that substantial authority exists for the tax position “even if” the IRS discovers the true facts of the transaction and applies the substance over form doctrine. Hamersley testified to the Senate that tax fraud is creating paper tax loss deductions and hiding the true facts from the IRS, something he did every day for his corporate clients while at KPMG. Hamersley is a liar and a charlatan, who one day will be exposed for the thief and liar that he is, perhaps, within the next 60 days. At a minimum Hamersley is guilty of tax fraud under his own definition and theft of honest services.
Thoreau,
Then, why not make public these documents you purport to have which you insist Hamersley in crimes? What are you doing that you say might bring such facts about Hamersley to light in as soon as the next 60 days?
Whistlewhat (David Greenberg, the former KPMG tax shelter promoter):
David, what are you going to do when Hamersley finds out that it is you who have been posting all of these false, delusional, and defamatory statements about him just like the ones you have been posting under a number of other aliases on other blogs. It shouldn’t take him too long since you are saying exactly the same things about me and other former KPMGers in emails and in telephone conversations. Taking shots at others does not diminish the magnitude of one’s dastardly deeds.
Thoreau, aka Whistlewhat, etc., all of whom are David Greenberg, the former KPMG tax shelter promoter:
Sorry David, having trouble keeping up wiht your alias, eventhough it is nearly as transparent as your "three colors of pens" forgery technique. So, what are you going to do when Hamersley finds out that it is you who have been posting all of these false, delusional, and defamatory statements about him just like the ones you have been posting under a number of other aliases on other blogs.
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