Peter Cinquegrani, a former Arnold & Porter partner, dodged the jail time bullet and was sentenced to only three years probation. He had previously pled to Klein conspiracy and tax evasion. His activity drawing the angst of the Government involved various shelters, including some promoted by Ernst & Young.
Here are some of the quotes attributed to Cinquegrani at the sentencing hearing from the various services cited below:
"I know what I did was wrong."
"I know what I did was wrong, and I did it anyway."
"When you break it down, I helped people cheat on their taxes."
"I helped people cheat on their taxes,"
In justification of the light sentence, the Judge Stein cited Cinquegrani's cooperation with the Government, including explaining the PICO shelter to investigators. Got that concept -- if you are going to cheat, do it in a complex way so that, if you are caught, you can help the Government and mitigate the sentence.
Sources:
Reuters
Business Week
JD Journal
Jack Townsend offers this blog on Federal Tax Crimes principally for tax professionals and tax students. It is not directed to lay readers -- such as persons who are potentially subject to U.S. civil and criminal tax or related consequences. LAY READERS SHOULD READ THE PAGE IN THE RIGHT HAND COLUMN TITLE "INTENDED AUDIENCE FOR BLOG; CAUTIONARY NOTE TO LAY READERS." Thank you.
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Wednesday, March 31, 2010
1 comment:
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Yikes it certainly pays to be a lying rat in this country. For the record when this dude was purveying PICO (and other shelters) he may have believed they were aggressive but there is no way he believed them to be criminal tax fraud at the time. Interestingly, PICO may meet the requirements of the new codified economic substance law. Of course, when the prosecutors tell you what to say to get no jail time, all that goes out the window. Being a rat is bad enough but when one lies to get no jail time at the expense of others lives, it is unconscionable. The American justice system is based on incomprehensible laws, a jury with nothing else to do with their time, negative inferences and bribed lying criminal witnesses; true justice.
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