Daugerdas Consents To Disbarment In Illinois

Tax shelter architect Paul M. Daugerdas has filed a motion to consent to disbarment in Illinois based on his criminal conviction

On June 23, 2009, a grand jury in the Southern  District of New York returned a 27-count indictment against Movant and others (United States of America v. Paul M. Daugerdas, et al., docket number 09 CR.  581). Several superseding indictments were filed, the final one, consisting of 17 counts, on July 1, 2013. Count One  of the final superseding indictment charged Movant with conspiracy to defraud  the United States, in violation of Title 18, United States Code, Section 7201,  and Title 18, United States Code, Section 1343. Counts Two through Eleven and  Fourteen through Sixteen charged Movant with tax evasion, in violation of Title  26, United States Code, Section 7201, and Title 18, United States Code, Section  2. Count Thirteen charged Movant with corrupt endeavor to obstruct and impede  the internal revenue laws, in violation of Title 26, United States Code, Section  7212(a). Count Seventeen indictment charged Movant with mail fraud, in violation  of Title 18, United States Code, Sections 1341 and 2…

Count One of the superseding indictment charged  Movant with participating in a scheme by which, between 1994 and 2004, he and  others acted to defraud the Internal Revenue Service (hereinafter “IRS”) by designing, marketing, implementing and defending fraudulent tax shelters  using means and methods intended to deceive the IRS about the validity of those  shelters, and about the circumstances under which the tax shelters had been  marketed and implemented, in violation of Title 18, United States Code, Section  371…

 On October 31, 2013, a jury in case number 09  Cr. 581 returned a verdict of guilty against Movant of the charges in Counts  One, Five through Seven, Eleven, Thirteen and Seventeen, and acquitted him of  the remaining charges. Movant was therefore acquitted of tax evasion charges  involving several clients and Movant’s own tax obligations.

Movant is scheduled to be sentenced in case  number 09 Cr. 581 on June 25, 2014, and a judgment of conviction will be entered  at that time.

(Mike Frisch)