Charles Bee, former vice chairman of BDO - 16 monthsAll of these pled and cooperated in other prosecutions, most prominently of Daugerdas, whose trials have been reported on this blog.
Adrian Dicker, former vice chariman of BDO - 10 months
Robert Greisman, former partner in BDO - 3 months
Bee got the most serious sentence. Regarding his misconduct, the Bloomberg article notes (emphasis supplied by JAT):
While Bee pleaded guilty to fraud in 2009 and testified twice against BDO’s former Chief Executive Officer Denis Field, U.S. District Court Judge William Pauley in Manhattan said today he couldn’t overlook Bee’s participation in the biggest tax-shelter fraud in U.S. history.
“Your cooperation was important but your crimes are of unbelievable proportions,” Pauley said today in federal court in Manhattan. “I believe a term of imprisonment is entirely appropriate.”
Pauley said Bee, a certified public accountant, earned at least $23.6 million in fees as a result of the scheme, encouraged others at BDO to break the law and had been one of the leaders of what he called “a rogue group” at the firm.
“Mr. Bee should have come forward a lot earlier than he did,” Pauley said. “Had he done so, this horrific scheme wouldn’t have gone as far as it did.”
The judge said that while he found Bee’s testimony to be credible and his cooperation significant, “it doesn’t change the fact that he helped perpetrate one of the largest tax frauds in the history of the United States.”
Both defense lawyer Michael Hueston and Assistant U.S. Attorney Nanette Davis today argued that Bee deserved leniency, citing his aid to the government. Davis said federal prosecutors and investigators interviewed 50 to 75 BDO partners about the scheme before Bee agreed to discuss his crimes and said he was the most forthcoming of the cooperators.
“Bee was the most candid about blatant criminality that went on there,” Davis said. “It was a refreshing change and for that reason, the government moves for a substantial departure” from the potential life term which Bee faced because the fraud scheme was larger than $400 million.
The judge said Bee knew the tax shelters would have been disallowed by the Internal Revenue Service and had lied during a 2005 deposition in a lawsuit.
Davis said Bee has forfeited at least three homes, including a residence in Florida worth $3.5 million and a 40-foot trailer.I have bold-faced the part about the Government's request for downward variance from the indicated potential life term. This is a reminder of the benefits of the early plea and cooperation and the judge's substantial Booker discretion.
The judge also ordered $69.4 in restitution against all three.
The tax loss apparently was $1.5 billion.