Thursday, June 04, 2009

Guilty Plea in Tax Shelter Fraud

From the New York

A former vice chairman of the accounting firm BDO Seidman pleaded guilty on Wednesday to federal charges that he helped clients evade more than $200 million in taxes through illegal tax shelters.

The executive, Charles W. Bee Jr., and another executive, working with the law firm Jenkens & Gilchrist, sold illegal shelters to wealthy clients, said Lev Dassin, acting United States attorney.

Mr. Dassin said Mr. Bee knew that the transactions would be disallowed by the Internal Revenue Service.

Adam Abensohn, a lawyer for Mr. Bee, declined to comment. Mr. Bee, 63, agreed to forfeit $20 million and two homes. He faces up to 15 years in prison on three fraud counts, prosecutors said.

BDO Seidman said in a statement that the tax shelter group was dissolved several years ago.

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