News

Tax

[05/15] House members debate surtax to fund veterans' education
[05/15] Contractors, insurance firms gouging taxpayers, panel says
[05/08] Many businesses didn't claim tax refund

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White Collar Crime

[05/15] SEC charges Broadcom co-founders in options probe

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Business

[05/15] Ex-Army Corps consultant among indicted in levee bribe case
[05/15] Icahn to Yahoo board: Sell to Microsoft or leave
[05/15] Icahn sends letter to Yahoo, plans proxy battle
[05/15] Judge: Countrywide shareholders' suit can proceed

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Case Summaries

Tax Law

[05/15] US v. Wealth & Tax Advisory Servs., Inc.
In a tax case, an order denying the government's petition to enforce a summons issued by the IRS is reversed where: 1) a 29-page "draft opinion letter" sent by taxpayers' accountants to the taxpayers' tax lawyers, containing extensive legal authority and analysis of a complicated tax transaction, constituted a "memorandum"; and 2) thus, even though the letter was characterized as a "draft," it was nevertheless subject to disclosure pursuant to taxpayers' agreement to provide to the IRS "[a]ll opinions and memoranda that provide a legal analysis" of the transaction in question.

[05/13] S&M Brands, Inc. v. Cooper
In an action involving the Tennessee's Attorney General's enforcement of an amended escrow provision in the Master Settlement Agreement between various states and tobacco manufacturers alleging an impermissible retroactive effect in violation of due process, a summary judgment ruling is reversed and remanded with instructions to dismiss the case without prejudice on grounds of sovereign immunity where: 1) continuous application of the retroactive statute is unlikely; 2) states enjoy immunity in federal court for tax-related claims; 3) the inherent dignity of the sovereign state favors immunity; and 4) the semi-tax nature of the escrow system would better lend itself to a suit in state court.

[05/12] Kornman & Assocs. Inc. v. US
In a proceeding under the Tax Equity and Fiscal Responsibility Act (TEFRA) in which plaintiffs were alleged to have attempted to create an artificial tax loss through the short sale of Treasury Notes and the transfer of partnership interests, summary judgment for the government and dismissal with prejudice of a petition for readjustment of partnership items is affirmed where the obligation to close a short sale is a liability for purposes of I.R.C. section 752.

[05/08] US v. Mendoza
A conviction for subscribing to a false income tax return is reversed and remanded due to a violation of defendant's Sixth Amendment speedy-trial right where, despite defendant's departure to the Philippines, an eight-year delay between defendant's indictment and arrest was a result of the government's negligence, and prejudice is presumed. (Superseding opinion)

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White Collar Crime

[05/06] In re: Slatkin
Summary judgment in favor of bankruptcy trustee, avoiding under 11 U.S.C. section 548(a) and California Civil Code section 3439.04(a) certain transfers made by the debtor during his operation of a Ponzi scheme, is affirmed where: 1) the bankruptcy court did not abuse its discretion in denying appellants-investors' motion for a continuance to conduct further discovery; 2) investors' right to a jury trial was not violated by the grant of summary judgment; 3) the bankruptcy court properly determined that debtor acted with the actual intent to "hinder, delay, or defraud" his creditors; 4) a determination that debtor was not a "stockbroker" under the Bankruptcy Code was proper; and 5) prejudgment interest was properly awarded.

[05/05] US v. Eberhard
Conviction, sentence, and restitution ordered against defendant for conspiracy, investment advisor fraud, mail and wire fraud, and obstruction of justice, are affirmed over defendant's claims that: 1) application of newly-enacted 18 U.S.C. section 3771(a) was unconstitutional as applied to him under the Ex Post Facto and Due Process clauses; 2) the record did not support a four-level role enhancement under the sentencing guidelines; and 3) his sentence was substantively unreasonable in light of a probation office's recommended terms.

[04/23] US v. Rittweger
Conviction of multiple defendants for conspiracy to commit securities fraud, wire fraud, and commercial bribery, using facilities of interstate commerce to carry on and facilitate commercial bribery, wire fraud, and securities fraud is affirmed over claims that: 1) the district court erred by denying defendants' motion to sever under Fed. Crim. Pro. Rule 8(b) and Rule 14; and 2) the government violated Brady, when it failed to produce arguably exculpatory evidence with respect to a charged co-conspirator until the week of trial.

[04/23] US v. Livesay
On remand from the Supreme Court for reconsideration in light of Gall v. US, 128 S. Ct. 586 (2007), a sentence for a $1.4 billion fraud scheme is vacated and remanded where the district court committed Gall procedural error by: 1) legally erring in a U.S.S.G. section 5K1.1 downward departure; and 2) failing to adequately explain its sentence variance from the advisory Guidelines range to its chosen sentence in a way that allows for any meaningful appellate review.

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Tax-exempt Organizations

[05/06] Estate of Coll-Monge v. Inner Peace Movement
In an action for trademark infringement and related claims, summary judgment for defendants-non-profits is reversed in part and remanded where: 1) the district court erred in holding that a non-profit corporation cannot be a related company whose use of the trademark is controlled by the mark's registrant; and 2) there remain disputed issues of fact regarding both the doctrine's applicability in this case, and the capacity in which testator registered the marks with the USPTO.

[04/29] BB&T Corp. v. U.S.
In a suit against the government for a tax refund originating from a "lease-in/lease-out" (LILO) transaction, summary judgment for the government is affirmed where: 1) the transaction is not a genuine lease and sublease since it does not allocate rights, obligations, and risks as in a traditional lease which disallows plaintiff from making rental deductions; and 2) plaintiff is not entitled to deduct interests paid on a loan from its taxable income since the loan does not constitute genuine indebtedness.

[04/15] Platt Elec. Supply, Inc. v. EOFF Elec., Inc.
In an action alleging defendant, a non-profit consumer safety group, negligently misrepresented and fraudulently concealed that defective in-wall heaters were safe, grant of defendant's motion to dismiss and motion for judgment on the pleadings is affirmed where the district court properly dismissed negligent misrepresentation and fraudulent concealment claims as barred by the statutes of limitations, and did not abuse its discretion in dismissing the claims without leave to amend.

[03/25] US v. City of Houston
In a False Claims Act action brought on behalf of the United States against the City of Houston and a non-profit organization, alleging that defendants unlawfully received federal funds from HUD based on false and fraudulent information, summary judgment for defendants is affirmed where plaintiff was unable to show that either defendant acted with knowledge of any falsity or that defendants agreed with each other to defraud the government.

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