- 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