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3. Kanter's Fraud
Kanter was the architect who planned and executed the
elaborate scheme with respect to the kickback income payments
received from the transactions involving the Five. Ballard and
Lisle participated with him, shared in the payments, and
cooperated in the diversions. In our view, what we have here,
purely and simply, is a concerted effort by an experienced tax
lawyer and two corporate executives to defeat and evade the
payment of taxes and to cover up their illegal acts so that the
corporations, Prudential and Travelers, and the Federal
Government would be unable to discover them.
Respondent has proven by clear and convincing evidence that
Kanter underpaid his taxes for each of the years at issue
attributable to transactions related to the Five. Respondent has
also proven by clear and convincing evidence that Kanter intended
to evade taxes known to be owing on that income by conduct
designed to conceal, mislead, or otherwise prevent the collection
of such taxes.
The record is replete with several indicia of Kanter's
fraud. They are:
First, Kanter has a legal education. He has been a
practicing tax attorney since 1956. He has taught courses in
estate and gift taxation and estate planning at the University of
Chicago Law School. He has lectured and written extensively in
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