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Chicago lawyer gets 15 years in tax fraud case.

Byline: Larry Neumeister

NEW YORK -- A Chicago-area lawyer and accountant labeled by the government as history's most prolific and unrepentant tax cheat was sentenced Wednesday to 15 years in prison, and the judge bemoaned the ''incredible greed'' of some of America's wealthiest people for taking advantage of the tax shelters he peddled.

The lawyer, Paul M. Daugerdas, 63, was also ordered to pay nearly a half-billion dollars in restitution and forfeit $164 million in cash and property. He must report to prison Sept. 18.

Daugerdas earned more than $97 million as the architect of a two-decade fraud that relied on sophisticated tax shelters to shield some of the country's richest people from paying taxes on nearly $8 billion in gains, said U.S. District Judge William H. Pauley III.

The government lost $1.6 billion in tax revenues as a result, the government said. Prosecutors said Daugerdas paid $8,000 in taxes when he owed $32 million.

''This case shows the astonishing lengths some super-wealthy Americans will go to avoid their obligation as citizens,'' Pauley said.

''Mr. Daugerdas was a tax shelter racketeer who tapped into the incredible greed of some of the country's wealthy.''

Daugerdas was convicted last year of helping to create tax shelters that benefited some of the world's wealthiest investors, including the late sports entrepreneur Lamar Hunt, trust fund recipients, inventors, a grandson of the late industrialist Armand Hammer, people who built fortunes on real estate or family businesses and a man described by a prosecutor as an ''accidental millionaire'' because he was one of the earliest investors in Microsoft Corp.
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Author:Neumeister, Larry
Publication:Telegram & Gazette (Worcester, MA)
Date:Jun 26, 2014
Words:265
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