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Sullivan & Cromwell Partner Goes to Prison
January 27, 2012
[ by Melanie Gretchen ]
A Greek Tragedy.'
The American dream of one lawyer who had risen out of humble beginnings and achieved immense success got a rude awakening earlier this month. This individual - the son of an Irish immigrant dock worker and a public schools clerk and custodian, the first in his family to earn a college degree - who rose to become a partner at Sullivan & Cromwell, was sentenced to more than 2 years in prison.
John O'Brien's crime was evading taxes on $10.8 million in income. Although Judge Henry Pitman viewed this case as "a Greek tragedy," he acknowledged that millions of dollars have yet to be recouped. It's alleged that O'Brien, 48, used the money for personal expenses, including a weekend home, international travel and the funding of a rare books business, as well as toward maintaining a relationship with a man he met in 1996 - that, according to court records.
O'Brien's lawyer, Russell Neufeld, attributed his client's failure to pay taxes between 2001 and 2008 to "a serious mental disorder and his dysfunctional relationship with his partner."
O'Brien pleaded guilty in August 2011 to 4 criminal misdemeanors, and to owing $2.5 million in taxes during his time at Sullivan & Cromwell. The firm, which has reported his income to the IRS, is not accused of any wrongdoing.
Sentencing. Judge Pitman sentenced O'Brien in Manhattan federal court to a total of 28 months: 7 months for each count to be served consecutively. At sentencing, O'Brien told the judge he was determined to practice law one day. But for now, he will comply with the order that has him scheduled to report to prison on 2/12/12.
The case: USA v. O'Brian, U.S. District Court for the Southern District of New York, No. 11-00652.
For further details, go to [Reuters, 1/11/12].

