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White Collar Posts

Thoughts on the Manafort & Gates Indictment: Focused on FBAR Violations >
October 31, 2017
By: Carolyn H. Kendall
On Monday, October 30, 2017, Special Counsel Robert Mueller unsealed the indictment against former Trump campaign chairman Paul Manafort and his business associate, Richard Gates. The majority of the indictment - 7 out of 12 counts - relates to the pair's alleged failure to file FBARs, which is a violation of Title 31, not Title 26, of the U.S. Code.
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Almost Anyone Can Be a Felon: the Troubling Scope of Tax Obstruction, Part II >
August 16, 2017
By: James R. Malone, Jr.
Part I of this Post discussed the background and holdings of United States v. Marinello. This post focuses on the implications of the Second Circuit's construction of the omnibus clause of section 7212(a) of the Internal Revenue Code and on the potential ways in which the Supreme Court might narrow that construction.
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Almost Anyone Can Be a Felon: The Troubling Scope of Tax Obstruction, Part I >
August 14, 2017
By: James R. Malone, Jr.
Next term, the Supreme Court will be reviewing the scope of "tax obstruction" under section 7212(a) of the Internal Revenue Code in a case from the Second Circuit holding that a failure to keep adequate records could support a felony conviction.
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Interview with Victor Song, Former Chief of IRS Criminal Investigation (CI) >
January 15, 2016
Peter Hardy interviews former Chief of IRS Criminal Investigation (CI), Victor Song, about the future of international tax enforcement. International enforcement has been a top priority for the IRS for many years, and Mr. Song, who now leads his own consulting firm, has had a critical role in that effort.
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A Conversation with Darpana Sheth of the Institute for Justice About Legal Challenges to Civil-Forfeiture Laws >
November 30, 2015
The Philadelphia District Attorney's Office recently settled, in part, a federal civil-rights class-action lawsuit seeking declaratory and injunctive relief in regard to its civil-forfeiture policies. I had the opportunity to speak with Darpana Sheth, a lawyer with the Institute for Justice and the lead counsel for the plaintiffs, about this development.
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A Conversation with UVA Law's Brandon Garrett About the DOJ's Swiss Bank Program >
October 22, 2015
By: Carolyn H. Kendall
Recently I had the opportunity to speak with my former law professor, Brandon Garrett, about the DOJ's Swiss bank program. Professor Garrett is the Justice Thurgood Marshall Distinguished Professor of Law at the University of Virginia School of Law, and author of the recent book Too Big to Jail: How Prosecutors Compromise with Corporations. Professor Garrett has written and spoken extensively about white collar corporate prosecutions and the use of non-prosecution and deferred prosecution agreements in the corporate prosecution context.
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Independent Contractor Misclassification Presents DOL/IRS Dual Threat >
September 9, 2015
By: Andrea M. Kirshenbaum
In a September 10 article for The Legal Intelligencer, Employment Principal Andrea M. Kirshenbaum and White Collar Principal Peter D. Hardy look at the Department of Labor's (DOL) recent interpretation of how the Fair Labor Standards Act (FLSA) applies to the misclassification of independent contractors.
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New Jersey Non-Profit Hospital Stripped of Tax Exemption Based on Ruling that Modern Non-Profit Hospitals Essentially Function as For-Profit Businesses >
July 13, 2015
By: Carolyn H. Kendall
A recent court ruling has called into question some basic assumptions regarding the ability of not-for-profit entities to obtain certain tax exemptions. In AHS Hospital Corp. v. Town of Morristown, the Tax Court for the State of New Jersey recently ruled that Atlantic Health System Hospital Corporation, the parent company of Morristown Medical Center (collectively, “Atlantic” or the “Hospital”), was ineligible for exemption from state property tax. This ruling, if upheld, could cost the Hospital millions of dollars each year.
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Potential Class Action Highlights Cyber-Identity Theft Issues in the Tax Industry >
April 30, 2015
By: Abraham J. Rein and Carolyn H. Kendall
The tax industry has an identity theft problem. According to the Government Accountability Office (“GAO”), the IRS estimates that in 2013 it paid out approximately $5.8 billion in tax refunds to filers later determined to be identity thieves.
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White Collar Principal Hardy and Associate Kendall Author Guest Blog on SCA Searches for Data Stored Abroad for the Federal Tax Crimes Blog >
April 25, 2015
In an April 25 guest blog post for Federal Tax Crimes, White Collar Principal and Data Protection/Breach Practice Group Co-Chair Peter D. Hardy and Associate Carolyn H. Kendall examine the Microsoft Appeal in In re Warrant to Search a Certain E-Mail Account, 15 F. Supp. 3d 466 (S.D.N.Y. 2014).
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Pennsylvania Bank Consents to $1.5 Million Assessment for Failing to File Required Suspicious Activity Reports Regarding Transactions by Bank Insider >
March 3, 2015
By: Carolyn H. Kendall
On February 27, 2015, the Financial Crimes Enforcement Network (FinCEN) assessed a $1.5 million civil monetary penalty against the First National Community Bank of Dunmore, Pennsylvania for willful violations of the Bank Secrecy Act (BSA).
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Financial Crimes Enforcement Network Pursues New Customer Due Diligence Requirements for Banks' Anti-Money Laundering Programs >
January 8, 2015
PABanker Magazine
In the December 2014 issue of PABanker, the magazine of the Pennsylvania Bankers Association, Internal Investigations & White Collar Defense Principal Peter D. Hardy and Associate Carolyn H. Kendall explore the obligation being added to the already significant requirements of banks' Anti-Money Laundering (AML) programs.
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First Circuit Upholds $50 Million Tax Refund for Business Deduction Beyond Single Damages in False Claims Act Settlement >
August 17, 2014
By: Barbara Rowland
The First Circuit Court of Appeals has upheld a jury verdict finding that a company settling claims under the False Claims Act (“FCA”) can deduct a significant portion of the settlement payment beyond single damages where the “economic reality” of the settlement payment reflects a compensatory purpose and the settlement agreement includes no tax characterization of the settlement payment.
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A Grimm Reminder: “Routine” Employment Issues Can Lead to Serious (and Potentially Criminal) Headaches >
May 1, 2014
By: Andrea M. Kirshenbaum
The indictment of New York Rep. Michael Grimm on federal fraud and tax charges flowed partly from alleged wage and hour violations at his Manhattan restaurant. The case serves as an example of how an issue that might arise in a civil action can lead to criminal charges.
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Evaders May Turn to Virtual Currency as Traditional Offshore Bank Secrecy Falters >
April 18, 2014
Bloomberg BNA White Collar Crime Report
In the April 18 issue of Bloomberg BNA's White Collar Crime Report, Internal Investigations & White Collar Defense Principal Peter D. Hardy and Associate Mehreen Zaman examine how virtual currency, like bitcoin, may become an option for tax evaders as offshore banking has become the focus of vigorous tax enforcement by U.S. officials.
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