(Changes headline to say "lawyer" instead of "ex-lawyer")
By Nate Raymond
NEW YORK Oct 31 A former partner at the defunct
law firm Jenkens & Gilchrist was found guilty Thursday of
running a tax shelter scheme, while the former chief executive
of accounting firm BDO Seidman was cleared on all charges in the
A federal jury in Manhattan convicted Paul Daugerdas, the
lawyer, on seven of 16 counts including conspiracy, tax evasion
and mail fraud following an eight week re-trial in his criminal
But the jury acquitted Denis Field, the one-time accounting
firm head, on all seven counts against him including conspiracy
and tax evasion.
It was a stunning change of circumstances for Field, 55, who
at an earlier trial was convicted along with Daugerdas, 63.
But U.S. District Judge William Pauley ordered a new trial
in June 2012 after determining a juror had lied during jury
The case spills out of what prosecutors have called a
multibillion dollar tax fraud scheme that netted its architects
$130 million in profits.
The probe helped bring down Jenkens & Gilchrist, a
600-attorney law firm based in Dallas whose Chicago office
Daugerdas oversaw. The firm dissolved in 2007 after agreeing to
pay a $76 million penalty to the Internal Revenue Service.
BDO USA, as the accounting firm is now known, meanwhile
agreed in June 2012 to pay $50 million to resolve government
claims it sold tax shelters that generated $6.5 billion in phony
tax losses for wealthy clients.
In the Daugerdas and Field case, prosecutors said from 1994
through 2004 that the men designed and marketed fraudulent tax
shelters that enabled them to make millions of dollars in fees,
commissions and bonuses.
The men, first charged in 2009, were among five defendants
whose case first went to a jury in 2011.
At that earlier trial, jurors convicted Daugerdas; Field;
Donna Guerin, another former Jenkens lawyer; and David Parse, a
former Deutsche Bank AG broker. It acquitted a fifth defendant,
former Deutsche Bank banker Craig Brubaker.
Guerin, who along with Daugerdas and Field won a right to a
retrial last year, subsequently pleaded guilty in September 2012
and was sentenced in March to eight years in prison.
Parse, who did not receive a retrial, was sentenced to 3-1/2
years in prison in March.
Lawyers for Daugerdas and Field did not immediately respond
to requests for comment. A spokeswoman for Manhattan U.S.
Attorney Preet Bharara had no immediate comment.
The case is USA v Paul Daugerdas et al, U.S. District Court,
Southern District of New York, No. 09-cr-581.
(Reporting by Nate Raymond; Editing by Bob Burgdorfer)