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SOURCE Clayman & Rosenberg LLP
CHICAGO, Nov. 4, 2013 /PRNewswire/ -- While disappointed in the ultimate outcome, Mr. Daugerdas takes comfort that the jury acquitted him of nine felony tax evasion counts, including three counts of personal tax evasion and six for clients relating to tax losses based on the tax shelters at issue in this case. The jury found in Mr. Daugerdas' favor on the major tax shelter issues, including the economic substance of the transactions, by concluding that he acted in good faith in issuing his tax opinions.
"The jury emphatically rejected the government's attempt to criminalize what it had previously characterized as the largest tax shelter fraud in history," said Brian Linder, an attorney for Mr. Daugerdas.
Unfortunately, the jury convicted Mr. Daugerdas on two sets of transactions in which there were errors made in the dating of documents unrelated to the substance of the tax shelters. On this issue, Mr. Daugerdas intends to pursue a vigorous appeal, because the evidence failed to show that he was aware of these dating errors.
The results of this case, however, together with the acquittal of Denis Field, reflect the jury's repudiation of the government's efforts to create a common law felony of "lack of economic substance" in tax fraud cases.
"Hopefully, this case will end the chapter of the government's misguided prosecutions of tax lawyers based on an unclear civil legal standard," said Henry Mazurek, who also represented Mr. Daugerdas at the trial.
Mr. Linder and Mr. Mazurek are partners at Clayman & Rosenberg LLP in New York.
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