PHILADELPHIA, PA--(Marketwire - October 27, 2010) - The next wave of U.S. Government criminal tax and related enforcement actions is rolling out, creating potential new risks for account holders, banks, corporations and their tax advisors and attorneys.
Among the current challenges are:
- How to proceed in the wake of the end of the government's special voluntary disclosure program for undeclared offshore accounts.
- More cases brought under the complex and hard-to-interpret Bank Secrecy Act, which applies to offshore accounts, anti-money laundering compliance programs and more.
- New levels of exposure for professional advisors such as tax preparers and attorneys as government enforcement intensifies and former clients formulate their defenses.
"The intensity of enforcement, changes in enforcement patterns and the increased use of complex, ambiguous statutes have created a daunting white-collar crime environment," says Peter D. Hardy, Esq., a former U.S. prosecutor and now a partner in the white collar defense, compliance and risk management practice group of law firm Post & Schell PC. Mr. Hardy is the author of the forthcoming Criminal Tax, Money Laundering and Bank Secrecy Act Litigation, a comprehensive, legal treatise to be published in November 2010 by BNA Books.
Mr. Hardy is available for conversations (and can also author bylined articles) on the major issues and current questions in tax fraud, money laundering and white collar crime, including:
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What's next in the offshore banking saga? The IRS has ended its special voluntary disclosure program for investors with undeclared offshore accounts, although the traditional voluntary disclosure program remains. "That leaves tough legal and practical questions for account holders who didn't come forward: How do they now approach the government, and what reception can they expect?" Mr. Hardy says. Investors, banks and corporations must also worry about rumored future U.S. enforcement actions against other banks or financial institutions, now that the prosecution of Swiss banking giant UBS AG has ended and the government decides which leads to pursue further.
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What might your financial hit be in an enforcement action? Government assessments and penalties can vary widely. Those under investigation or considering a voluntary disclosure need to know what to anticipate, and when there is room for negotiation.
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What is "willfulness," and what impact does it have in enforcement actions? White collar prosecutions often turn on the question of whether the accused engaged in willful behavior -- as opposed to being ignorant, confused or misinformed. Knowing how willfulness is defined can help those under investigation better prepare their defenses -- and can help those at risk make sure they avoid crossing legal lines.
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What do CPAs and other tax professionals need to do to make sure they're not considered as "aiders and abettors" or co-conspirators in crime? The government's next wave of enforcement is likely to target the "gate keepers:" the professional advisors -- especially tax return preparers -- in addition to their individual and corporate clients. Some will be targeted for investigation or prosecution, perhaps because they failed to establish the necessary safeguards when serving their clients. Professionals need to understand their risks and the steps they should take to avoid being prosecuted alongside their clients, or to avoid lawsuits by former clients who are facing steep penalties.
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How does the Bank Secrecy Act (BSA) create such potentially significant exposures? Once a rarely-used set of statutes, the government has turned to the BSA as a potent weapon. Not only does the BSA create potentially severe financial penalties for those holding undisclosed offshore accounts, but it imposes a broad range of regulatory and anti-money laundering requirements on banks, casinos and other financial institutions. The BSA is likely to be an important piece of upcoming government enforcement actions and banks, account holders and their advisors need to be prepared.
"Tax and money laundering enforcement shows no sign of slowing and is likely to be expanding into new areas of complexity," Mr. Hardy says. "Investors, institutions and their advisors and counsel need to prepare now to anticipate and address risks and resolve them if at all possible."
For more information, or to schedule an interview or arrange a bylined article, contact Katarina Wenk-Bodenmiller of Sommerfield Communications at (212) 255-8386 or katarina@sommerfield.com.
About Criminal Tax, Money Laundering and Bank Secrecy Act Litigation
Criminal Tax, Money Laundering and Bank Secrecy Act Litigation (BNA Books, November 2010) is a 1,700+ page legal treatise that focuses on the entire range of complex legal, factual, pragmatic and tactical issues present at every stage of the high-stakes criminal cases handled by the IRS -- from investigation to indictment to trial to sentencing -- and has been well-reviewed by prominent members of the national criminal tax and white collar bar. It discusses tax shelter cases, anti-money laundering compliance, and more. For more information, visit http://storefront.bnabooks.com/epages/bnastore.sf/en_US/?ObjectPath=/Shops/bnastore/Products/1856.
About Peter D. Hardy, Esq.
Peter D. Hardy, a former federal prosecutor, is a Partner in Post & Schell's national White Collar Defense, Compliance & Risk Management Practice Group. His practice focuses on the counseling and defense of corporations, directors, officers, managers, professionals and others, across a broad spectrum of industries, who may face allegations of business-related or other misconduct.
Mr. Hardy has significant experience in complex criminal matters at the investigative, trial, and appellate levels. Before coming to Post & Schell, Mr. Hardy served for six years as an Assistant United States Attorney for the U.S. Attorney's Office in Philadelphia, and for five years as a Trial Attorney for the Department of Justice, in the Criminal Enforcement Section of the Tax Division in Washington, D.C. Prior to joining the Department of Justice, Mr. Hardy served as a judicial law clerk for U.S. District Judge George E. Woods, and for U.S. Court of Appeals Judge Cornelia G. Kennedy, in Detroit, Michigan.
Mr. Hardy has particular expertise in allegations of tax fraud, voluntary disclosures to the IRS, financial institution crime, money laundering, health care fraud, mortgage fraud, bankruptcy fraud, identity theft, environmental crime, and public corruption.
Mr. Hardy is the author of Criminal Tax, Money Laundering and Bank Secrecy Act Litigation, to be published in November 2010 by BNA Books, a major legal publishing house.
About Post & Schell PC
Post & Schell provides litigation, corporate, transactional, regulatory, compliance, consulting and educational services locally, regionally and nationally to a broad spectrum of proprietary and not-for-profit industries. The firm concentrates on providing these niche services in sophisticated and complex matters.
Post & Schell lawyers work extensively in industries including banking and financial services, professional services, energy, manufacturing, retail, and healthcare and pharmaceuticals. The firm routinely handles the most complex and sensitive issues in these industries. Areas of specialization include white collar defense, internal investigations, compliance, commercial litigation, intellectual property protection and appellate law.
Established in 1968, Post & Schell currently has approximately 165 lawyers in 7 offices: Washington, D.C.; Philadelphia, Pittsburgh, Harrisburg, Allentown, and Lancaster, PA; and Princeton, NJ.
Contact Information:
Contact:
Katarina Wenk-Bodenmiller
Sommerfield Communications, Inc.
(212) 255-8386
Katarina@sommerfield.com