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Former Partner Pleads Guilty to Tax Shelter Fraud
New York Law Journal
September 12, 2008
A former Arnold & Porter tax partner pleaded guilty Thursday in federal court to marketing fraudulent tax shelters.
Peter Cinquegrani, who worked at the firm from 1986 through 1993 and then again from 1997 to 2007, pleaded guilty to conspiracy to commit tax fraud, aiding and abetting tax evasion, and aiding in the submission of false and fraudulent documents to the Internal Revenue Service.
The charges were levied following an investigation into the marketing of shelters for high-income individuals by Ernst & Young. Cinquegrani's role was to draft opinions on the legality of the shelters for Ernst & Young clients.
Cinquegrani, 48, of Baltimore, faces a maximum of five years in prison on the conspiracy and aiding and abetting counts and three years on the false document charge when he is sentenced on Dec. 11 by Southern District of New York Judge Colleen McMahon. He was represented by Paul C. Rauser of the Washington, D.C-based Aegis Law Group.
The IRS announced Thursday it had reached a settlement with Arnold & Porter, which will pay an undisclosed civil tax shelter promoter penalty.
Assistant U.S. Attorneys Lauren Goldberg and Marshall Camp and Special Assistant U.S. Attorney John Sullivan handled the prosecution.
