by Kurt Schulzke on September 29, 2008
Haste makes waste. Any time 535 people reach an agreement this quickly, you know most of them did not even read it before signing off. That, sports fans, is how we got into this mess to begin with.
What remains to be seen is whether the measure will pass (probably) and whether the markets will be fooled (possibly). Early signs are not good with the Dow off 300 points, as I write. However, one should never overestimate the intelligence of investors who, after all, bought all of those mortgage-backed securities in the first place.
From a starting point of three pages last week, what appears to be the agreed bank bailout legislation runs to 109 pages of text that will generate millions if not billions in legal fees over the next five or ten years. My preliminary observations are as follows: [click to continue...]
by Kurt Schulzke on September 12, 2008
Sex abuse has so dominated the headlines of late that I was beginning to miss stories about tax abuse. But tax abuse aficionados now have something to chatter about thanks to the justifiably obscure Permanent Subcommittee on Investigations of the U.S. Senate’s Committee on Homeland Security and Governmental Affairs (”PSIHSGA”). Apparently for political effect, PSIHSGA Chair Carl Levin timed for September 11, 2008 this shocking (not) exposé on dividend abuse. [click to continue...]
by Kurt Schulzke on September 4, 2008
Yesterday, the SEC charged former Kellogg, Brown & Root, Inc. (KBR) executive Albert Jackson Stanley with participating in a “scheme” to win more than $6 billion in construction contracts by bribing Nigerian government officials. According to the SEC, “The contracts were awarded to a four-company joint venture of which The M.W. Kellogg Company, and later KBR, was a member.
The SEC’s complaint in the case — filed at Houston, in the U.S. District Court for the Southern District of Texas — can be accessed here and the SEC’s press release, here. [click to continue...]
by Kurt Schulzke on August 29, 2008
The U.S. Department of Justice took another ethical black eye yesterday, this time from the 2nd Circuit Court of Appeals in Manhattan. The court held — in a widely watched KPMG tax fraud case — that DOJ attorneys illegally interfered with the defendants’ access to legal counsel, protected under the 6th Amendment to the United States Constitution.
At its launch in October 2005, the DOJ touted the case — against thirteen KPMG partners and employees — as “the largest criminal tax case ever filed.” Perhaps they should have christened it “The Titanic.” In the related press conference, U.S. Attorney Michael J. Garcia pompously proclaimed, with requisite moralistic gravitas: [click to continue...]
by Kurt Schulzke on February 11, 2008
Today, attorney William Lerach was sentenced to two years in the federal pen for obstructing justice and making false statements. He once won a $7 billion judgment against Enron for . . . (drum roll) making false statements. It’s a classic example of what I call the “savvy guy syndrome,” a behavioral disorder in which an individual or a group follows the lead of so-called “savvy guys” right over the edge of legal or ethical cliffs.
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by Kurt Schulzke on January 16, 2008
Ever thought of becoming a tax collector? Practically anyone can take a shot at it these days, thanks to a little known provision in the Tax Relief and Health Care Act of 2006.
On January 14, 2008, the IRS issued “interim guidance” for blowing the whistle under its new program. The rewards for a successful whistleblower can be substantial [click to continue...]
by Kurt Schulzke on January 2, 2008
I’ve often wondered about this line from George H.W. Bush’s speech at the Republican Convention. Hard to believe that it’s already been 20 years. Maybe he actually meant “No new Texas!” It’s an easy mistake. But I digress.
About this time of year, with the holidays in the rearview mirror, the minds of the few remaining American taxpayers turn to (drumroll) taxes. The good news is that 2008 is here. The bad news [click to continue...]
