Gimme Disbarment For Tax Shelter Scheme

The District of Columbia Board on Professional Responsibility recommends disbarment for a criminal conviction without a hearing

We have reviewed the record in the light most favorable to Respondent, and have determined that there are no material issues in dispute. The facts admitted by Respondent show that, he helped organize, promote, and sell units in dozens of
illegal tax shelters, including an illegal Syndicated Conservation Easement (“SCE”) tax shelter that involved the transfer of land ownership between Southern Application Investment Fund 2014 (“SAIF”) and Thompson Mountain Holdings (“TMH”). Attachment B to ODC Statement (“Attachment B”) at 2-5; Attachment E at 9-11. Respondent arranged fraudulent appraisals to superficially increase the value of the land or conservation easement over the land far above fair market value. Attachment B at 4-5; Attachment E at 10-11. In anticipation of an IRS audit, Respondent falsified a sales agreement and other documents to make it appear that SAIF and TMH executed a written sales agreement in December 2014. Attachment B at 6-8. When the IRS began investigating the scheme, Respondent falsified other documents, with the understanding that the falsified documents would be used in an audit. Id.; Attachment E at 11-12. Respondent then mailed falsified documents to a taxpayer and an accounting firm, who submitted them to the IRS. Attachment B at 8-9; Attachment E at 13. Respondent’s knowing fraudulent actions resulted in $360,270,000 in false deductions claimed. See, e.g., Attachment E at 19.

The Court has previously found that efforts to defraud the IRS or other federal agencies involved moral turpitude.

This recommendation shows application of a procedure that looks beyond the statutory elements and into the undisputed facts to determine whether moral turpitude can be found without an evidentiary hearing.

In such circumstances, disbarment must be imposed . (Mike Frisch)