Reuters
A former law partner who was convicted in one of the largest U.S. criminal tax fraud cases in history has lost his bid to vacate $535.7 million in financial penalties against him.
The 2nd U.S. Circuit Court of Appeals on Monday rejected the appeal by Paul Daugerdas, finding that he was either too late to raise his arguments or they were without merit.
Daugerdas was found guilty on charges including conspiracy, tax evasion and mail fraud by a New York federal jury in 2013. He was convicted of overseeing fraudulent tax shelters for about two decades, mostly at now-defunct law firm Jenkens & Gilchrist, costing the U.S. government more than $1.63 billion in tax revenue.
In addition to being sentenced to 15 years in prison, Daugerdas was ordered to forfeit $164.7 million and make restitution payments of $371 million.
Daugerdas filed a petition arguing the financial penalties should be thrown out due to a pair of U.S. Supreme Court decisions that were reached in 2017, four years after his conviction. The 2nd Circuit held Monday that Daugerdas “procedurally defaulted” by not raising those arguments earlier.
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