DOJ-OGR-00009514.jpg
560 KB
Extraction Summary
9
People
3
Organizations
0
Locations
4
Events
5
Relationships
1
Quotes
Document Information
Type:
Legal document
File Size:
560 KB
Summary
This legal document, a page from a letter to Judge William H. Pauley, III, argues that a defendant named David was not a culpable participant in the illegal aspects of the Jenkins tax shelter scheme. The author contends that David's acquittal on conspiracy and tax evasion charges, along with his co-defendant's full acquittal, shows the jury believed David did not know the shelters were illegal. The document attributes David's belief in the shelters' legality to high-level approval from Deutsche Bank and the belief that a legal "loophole" had been found, suggesting his convictions for mail fraud and tax obstruction were solely for separate "backdating" transactions.
People (9)
| Name | Role | Context |
|---|---|---|
| William H. Pauley, III | The Honorable |
The document is addressed to The Honorable William H. Pauley, III.
|
| Shih |
Introduced David and his partner Rod McKay to Daugerdas.
|
|
| David | Defendant/Participant in tax shelters |
A central figure in the document, involved in tax shelter trades and convicted of mail fraud and tax obstruction.
|
| Rod McKay | David's partner |
Mentioned as David's partner, introduced to Daugerdas by Shih.
|
| Daugerdas |
Was introduced to David and Rod McKay, and believed to have found a "loophole".
|
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| Craig Brubaker | Co-defendant |
Mentioned as David's co-defendant who received a complete acquittal.
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| Irwin Mayer |
Mentioned in a footnote as the author of a letter to Bob Price.
|
|
| Bob Price | General Counsel for Alex Brown |
Mentioned in a footnote as the recipient of a letter from Irwin Mayer.
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| Alex Brown |
Mentioned in a footnote in relation to his general counsel, Bob Price.
|
Organizations (3)
| Name | Type | Context |
|---|---|---|
| ZUCKERMAN SPAEDER LLP | law firm |
Appears on the letterhead of the document.
|
| Deutsche Bank | company |
Mentioned for its participation in tax shelters, which was approved at the bank's highest levels.
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| Jenkins firm | firm |
Associated with the tax shelter scheme mentioned throughout the document.
|
Timeline (4 events)
2002
Involvement in three "backdating" transactions where trades from one year were used to generate tax benefits.
A jury acquitted David on tax conspiracy and tax evasion counts, and completely acquitted his co-defendant Craig Brubaker, but convicted David for mail fraud and tax obstruction.
Relationships (5)
The document identifies them as "co-defendant" in a legal case.
Shih introduced David to Daugerdas, facilitating a business relationship.
They were introduced and "began doing business" related to tax shelters.
A footnote mentions a letter from Irwin Mayer to Bob Price.
Key Quotes (1)
"loophole"Source
— Daugerdas and his partners (believed by David)
(Describing what David and others believed Daugerdas had found, which could be exploited until it was closed, making them think the tax shelters were lawful.)
DOJ-OGR-00009514.jpg
Quote #1
Full Extracted Text
Complete text extracted from the document (1,749 characters)
Case 1:20-cr-00330-PAE Document 16166320 Filed 02/24/22 Page 95 of 117
A-5938
Case 1:09-cr-00581-WHP Document 604 Filed 03/16/13 Page 9 of 14
A-5938
Case 1:09-cr-00581-WHP Document 604 Filed 03/16/13 Page 9 of 14
ZUCKERMAN SPAEDER LLP
The Honorable William H. Pauley, III
March 7, 2013
Page 9
March 7, 2013
Page 9
the relationship. Shih introduced David and his partner Rod McKay to Daugerdas, and they began doing business.
As the Court knows, Deutsche Bank’s participation in the tax shelters was approved at the bank’s highest levels.⁵ That fact, coupled with the prominence of the Jenkins firm and the knowledge that other law and accounting firms were marketing similar products, gave David comfort that the tax shelters were lawful. Like many others, he believed that Daugerdas and his partners had found a “loophole” that could be exploited until it was closed. From 1998 to 2001, tax shelter trades became a part of David’s business.
As we see it, the jury accepted the proposition that David was not a culpable participant in the overall Jenkins tax shelter scheme. His acquittal on the tax conspiracy count and the substantive tax evasion counts (and the complete acquittal of his co-defendant Craig Brubaker) confirm the point. The jury, it seems, concluded that David did not know that a lack of economic substance made the Jenkins shelters illegal. If that is correct, then David’s convictions for mail fraud and tax obstruction reflect his involvement in the three “backdating” transactions. In each instance, trades effected in one year (e.g., 2002) were used to generate tax
⁵ See, e.g., Tr. 2965 (discussing letter from Irwin Mayer to Bob Price, Alex Brown’s general counsel); Tr. 5678-79 (confirming that approvals from legal, credit, tax and compliance had been obtained for the Homer transaction).
DOJ-OGR-00009514
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