[ by Howard Haykin ]

The "biggest U.S. tax-fraud prosecution in history" ended with the former law partner of now-defunct Jenkens & Gilchrist pleading guilty.  U.S. District Judge William Pauley, who labeled the case as the "biggest," presided over the case involving a 10-year tax shelter scheme that created more than $1 billion in phony losses.

Donna Guerin was convicted in May 2011 with 3 other defendants who took part in the tax shelter scheme.  Three of the convictions, including Guerin’s, were overturned in June after the U.S. District Judge found that Juror #1 in the case - Catherine Conrad - lied about her past, including that she was an alcoholic and a suspended attorney - to make herself more marketable as a juror.

The jury, including Conrad, had returned guilty verdicts against Guerin and her fellow Jenkins partner, Paul Daugerdas; Denis Field, former CEO at accounting firm BDO Seidman LLP; and David Parse, who worked for Alex. Brown, a Deutsche Bank unit.  Craig Brubaker, a 2nd former Alex. Brown accountant, was found not guilty.

Pauley further found out that Parse’s lawyers failed to reveal information they had about Conrad before the jury delivered its verdict.  As a result, the judge refused to grant Parse a new trial.  Nevertheless, Parse is seeking to overturn his conviction by claiming his lawyers, from the New York firm of Brune & Richard LLP, provided him with inadequate legal help.

Guilty Plea.   But Guerin pleaded guilty on Thursday in Manhattan federal court to one count each of conspiracy and tax evasion.  Her plea came as prosecutors were preparing to retry the defendants whose convictions were overturned following the juror's misconduct.

The trial included 9,200 pages of testimony from 41 witnesses. Lawyers introduced 1,300 pieces of evidence.

The case is U.S. v. Daugerdas, 09-CR-581, U.S. District Court, Southern District of New York (Manhattan).  [Bloomberg, 9/14/12 ]