- 6 - The promotion of the S-J partnerships was a fraudulent tax shelter promotion. In a class action, the District Court entered a conclusion of law that petitioner and Garfinkle engaged in acts, practices, and a course of business that operated as a fraud and deceit upon purchasers of limited partnership interests in the S-J partnerships.5 Petitioner has previously pled guilty to crimes of fraud and deceit arising from the S-J partnerships, including: (1) Mail fraud; (2) aiding, assisting, and advising in the preparation of an individual income tax return which was fraudulent as to material fact; and (3) willfully and knowingly conspiring to devise a scheme to defraud and to obtain money from the Internal Revenue Service by means of false representations. For the years 1975 through and including 1982, petitioner failed to maintain complete and adequate books and records of his income-producing activities, and he failed to cooperate with respondent's agents in submitting his books and records to them for examination. In addition, petitioner fraudulently and with intent to evade tax made or caused to be made false and misleading representations to agents of respondent during their investigation of entities with which petitioner was associated and for which he claimed deductions on his returns for the taxable years 1974-76 and 1979-81. 5 The class action referred to above was brought by investors in the S-J partnerships. Den Haene v. Inas Associates, L.P., No. 78 civ. 4360 (CES) (S.D.N.Y., filed Nov. 2, 1984).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011