Representative Matters

Caroline D. Ciraolo Representative Matters (Civil)

  • In re Interstate Subpoena for Custodian of Records, Misc. Petition No. 29618M, Circuit Court for Montgomery County, MD (March 27, 2014) (successfully intervened in and obtained a protective order in response to a grand jury subpoena for a client’s records in the possession of an accountant)
  • United States v. Stahlnecker, Case No. 1:13-cv-01050-MJG, U.S. District Court for the District of Maryland (February 25, 2014) (successfully negotiated a settlement of a suit to reduce a federal tax lien to judgment, resulting in a reduction of assessed trust fund recovery penalties by approximately $400,000).
  • Signature Flight Support Corporation v. Supervisor of Assessments for Anne Arundel County, Case No. 13-MI-AA-0579 (1-2), Maryland Tax Court (January 22, 2014) (successfully challenged the denial by the State Department of Assessment and Taxation and the Property Tax Assessment Appeals Board for Anne Arundel County (“PTAAB”) of an application for exemption from property tax on substantial improvements at the Thurgood Marshall Baltimore Washington International Airport, establishing that client was exempt as lessee of property owned by the State and used for a concession at a public airport)
  • State of New York v. John Doe, Case No. C-13-179578, Circuit Court for Anne Arundel County, MD (November 8, 2013) (successfully intervened in and negotiated a dismissal of an action to enforce a grand jury subpoena for a client’s records in the possession of an accountant)
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Caroline D. Ciraolo Representative Matters (Criminal)

  • Represented individual investigated for filing false income tax returns resulting in a loss of more than $700,000. Client charged with a single violation of 26 U.S.C. 7206(1) resulting in an advisory Guideline range of 24 to 30 months. In September, 2014, persuaded the court to grant a downward variance, resulting in sentence of probation with the condition of 12 months of home detention.
  • Represented individual investigated for filing false income tax returns.  Negotiated a misdemeanor plea to a single count of 26 U.S.C. 7207 and in May, 2014, successfully argued for a probationary sentence.
  • Represented individual investigated for embezzlement and filing false income tax returns and amended income tax returns over a twelve year period.  Negotiated a two-count plea to violation of 18 U.S.C. 1343 and 26 U.S.C. 7201.  In April, 2013, successfully challenged government’s argument against grouping, resulting in a reduced advisory Guideline range of 27 to 33 months, and persuaded to court to grant downward variance, resulting in a 15-month sentence with a recommended designation to a minimum security satellite camp.
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Jay R. Nanavati Representative Matters

  • Achieved a rare acquittal for a business owner in a federal tax fraud conspiracy jury trial after four weeks of government evidence and 117 government witnesses. The government was represented by a team of three attorneys from the U.S. Attorney's Office and the Department of Justice Tax Division.

  • Obtained dismissal before trial of all 53 counts of federal mail fraud, money laundering, conspiracy, and criminal forfeiture, in a case that the FBI, IRS-CI, and the U.S. Attorney’s office had spent five years investigating and prosecuting.

  • Represented a multinational financial institution facing a federal grand jury investigation for allegedly assisting U.S. taxpayers in evading their U.S. tax obligations.

  • Persuaded IRS-CI to terminate an investigation of the owner of a tax return preparation business for allegedly preparing false tax returns.
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Brian P. Ketcham Representative Matters

  • Together with Sharon L. McCarthy and Robert S. Fink, Mr. Ketcham represented an individual charged in multiple federal indictments in two different Districts in connection with a complex money laundering conspiracy.  The defendant was sentenced to a term of imprisonment nearly 10 years below the low-end of the sentencing guidelines.

  • Mr. Ketcham represented an individual under IRS criminal investigation in connection with alleged fraudulent business expenses and successfully resolved the investigation with a civil settlement.
         
  • Mr. Ketcham represented a tax return preparer under investigation for preparing false Schedule C and Schedule E deductions.  The case was resolved without any civil penalties or referral for criminal investigation.
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Stow Lovejoy Representative Matters

  • Represented numerous clients making voluntary disclosures of offshore bank accounts.
     
  • Advised non-US family groups on structuring of investment in US real property.
     
  • Advised multinational family with respect to structure of worldwide business under US tax law.
     
  • Represented investment partnerships on IRS disallowance charitable deductions for donating historic façade easements with respect to landmark buildings.
     
  • Represented whistleblowers reporting over one billion dollars of unpaid income taxes to the IRS Whistleblower Office.
     
  • Represented individual investors in oil and gas drilling partnerships on IRS challenges to deductions.
     
  • Advised commodities exporter on export incentives under the Internal Revenue Code.
     
  • Represented investor in “distressed asset” tax shelter partnership at audit and in Tax Court.
     
  • Represented individuals and S corporation in contest of state tax allocation of “nowhere sales” to home state.
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Claude M. Millman Representative Matters

  • Andrx - Defended a subsidiary of Watson Pharmaceuticals in a Hatch-Waxman patent infringement suit filed by AstraZeneca

  • Continuum Health Partners - Secured a preliminary injunction against Oxford/United's efforts to remove 1,200 physicians from their networks; represented the client in a related arbitration

  • ADT - Defeated a putative consumer fraud class action in a $40 million action concerning the shift from analog to digital alarm transmitters

  • AriZona Iced Tea - Counsel for the companies and its 50 percent owner in three lawsuits against the passive owner
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Robert S. Fink Representative Matters

  • Mr. Fink obtained a jury acquittal on all 36 counts for his client, an accountant, who prepared tax returns on the theory that wages were not taxable.  The case was a retrial of the same charges that earlier resulted in a hung jury.  Both the government and experts in the field called the result, "astonishing."
     
  • At trial, Mr. Fink won innocent spouse protection for the wife of "Mad Dog Beck" of Drexel Burnham fame.  Mr. Fink proved that his client had no reason to question hundreds of thousands of dollars in nonexistent charitable deductions.
     
  • Mr. Fink convinced a jury to acquit a major New York contractor accused of illegally paying bribes to six different building managers on the theory that his client was the victim of six different extortions.
     
  • Mr. Fink represented the head of KPMG's tax practice in the largest tax fraud prosecution in United States history, in which Mr. Fink obtained the dismissal of the indictment on the ground of prosecutorial misconduct.
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Bryan C. Skarlatos Representative Matters

  • Mr. Skarlatos represents hundreds of taxpayers who are voluntarily disclosing to the IRS over $1 billion in off-shore bank accounts and related income tax liabilities.

  • Mr. Skarlatos has represented several witnesses in regulatory investigations into trading practices at large financial institutions.

  • Mr. Skarlatos has helped clients structure their affairs to avoid violating restrictions imposed by the Office of Foreign Assets Control.

  • Mr. Skarlatos has represented many individuals accused of money laundering and Bank Secrecy Act violations.

  • Mr. Skarlatos represents many taxpayers who are being investigated by the Department of Justice for tax-related issues, including alleged failure to report foreign bank accounts and income earned on those accounts.

  • Mr. Skarlatos represents several whistleblowers who have reported to the IRS Whistleblower Office billions of dollars in of unpaid income taxes.

  • Mr. Skarlatos represents a well-known businessman in a Tax Court case in which the IRS is claiming more than $130 million in taxes and penalties relating to alleged personal benefits from related-party transactions.
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Kevin M. Flynn Representative Matters

  • Mr. Flynn tried the first case litigated in the Tax Court involving an Internal Revenue Service challenge to an historic rehabilitation tax credit transaction.  Mr. Flynn argued that the IRS’ attack against a rehabilitation project involving a tax-exempt entity and a Fortune 500 company was unfounded, in light of the clear Congressional purpose behind the historic rehabilitation tax credit.
     
  • Mr. Flynn successfully defended a corporate client in a three-week Tax Court trial against IRS challenges to the ownership of patent rights and to the patent royalty rate, under a royalty agreement between the corporation and its shareholders.
     
  • Following a two-week trial in an innocent spouse case, Mr. Flynn obtained a favorable settlement for his client, substantially reducing her exposure to IRS claims for taxes.
     
  • Mr. Flynn won partial summary judgment against the IRS in an I.R.C. § 6700 return preparer penalty case, which eliminated virtually all of the IRS’ claim for penalties against his client.
     
  • In an appeal to the United States Court of Appeals for the Second Circuit, Mr. Flynn obtained reversal of a district court’s decision against his client in a case involving whether entertainers should be classified as employees or independent contractors.
     
  • Mr. Flynn won a complete victory against the New York State and City tax authorities in a case where he proved that his client who owned a New York City apartment was not a resident of New York and, thus, not subject to New York State and City taxes.
     
  • In litigation against the New York State tax authorities, Mr. Flynn successfully established that his client’s withdrawals from his professional corporation were loans and not compensation, and that the client, an attorney, was not liable for civil penalties.
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Sharon L. McCarthy Representative Matters

  • Obtained acquittal of Denis Field, former CEO of BDO Seidman, in a major tax shelter trial in the Southern District of New York.
     
  • Representation of garment industry manufacturer in connection with federal investigation into payroll, corporate, and personal tax evasion involving millions of dollars in unpaid taxes.  Successfully obtained a probationary sentence.
     
  • Representation of sole shareholder of Subchapter S corporation in federal tax fraud investigation, resulting in corporate plea with no charges against the individual.
     
  • Representation of commodities trader in connection with fraud investigation by the United States Attorney's Office for the Southern District of New York, the New York County District Attorney's Office, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
     
  • Representation of dozens of holders of foreign bank accounts in connection with voluntary disclosures before the Internal Revenue Service (criminal investigation and civil audit) and numerous state taxing authorities.
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Caroline Rule Representative Matters

  • Persuaded the United States Attorney's Office for the District of New Jersey to charge a doctor with one count of making a false statement to the IRS, when he had in fact evaded $4.2 million in taxes over a period of years; and then persuaded the Court to sentence the doctor to probation and community service, when the advisory sentence under the United States Sentencing Guidelines was 36 months in jail.

  • Represented the former head of KPMG’s tax practice in what was then termed the largest tax fraud prosecution in United States history, and obtained dismissal of the entire indictment on grounds of prosecutorial misconduct.
  • Persuaded the Criminal Investigation function of the IRS that a client who failed to collect and pay over employment taxes for many years did not act willfully, and that the matter should be transferred back to the IRS Civil Division.

  • In connection with a very large and complicated estate, persuaded the IRS that, by placing stock certificates with bearer stock powers into a safety deposit box to which the executor had access, the decedent had made a completed gift to the executor, which saved the estate millions in estate taxes.
     
  • Negotiated a misdemeanor plea and non-jail sentence for the owner of a medical laboratory who characterized kick-backs to doctors as ordinary business expenses.
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Brian C. Wille Representative Matters

  • Secured multi-million-dollar concessions from the Internal Revenue Service in litigation over allegedly abusive tax shelter (June 2010)
     
  • Secured, on appeal, reinstatement of fraud, breach of fiduciary and related claims in action involving oil industry joint venture, later resulting in seven-figure recovery on behalf of plaintiffs (March 2010)
     
  • Secured dismissal of fraud claims against senior officers of insurance company (April 2007)
     
  • Persuaded Securities and Exchange Commission to abandon securities fraud claims against ex-Chairman of major telecommunications company (March 2007)
     
  • Participated as part of a team that recovered more than $275 million in judgments and settlements on behalf of investors in action entitled In Re Safety-Kleen Bondholders Litigation (April 2005)
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Christopher M. Ferguson Representative Matters

  • Representation of employee of bidding agent in multi-jurisdictional Department of Justice bid rigging investigation into the municipal derivatives industry; persuaded government not to bring charges.
     
  • Representation of registered representative at major investment bank in coordinated multi-agency investigation into mutual fund market timing; persuaded Department of Justice and SEC not to bring charges.
     
  • Representation of target of investigation into tax evasion and Bank Secrecy Act violations in connection with foreign bank accounts; persuaded government not to bring charges.
     
  • Representation of multiple taxpayers in tax shelter litigations in the federal district courts and tax court.
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