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Jailed telecom tycoon Walter Anderson is accused of hiding nearly $500,000,000 in income from the Internal Revenue Service. But the tax collector isn’t the only one Anderson is alleged to have shortchanged. Last week his lawyers at the D.C. office of Chadbourne & Parke filed a motion in the U.S. District Court for the District of Columbia asking permission to withdraw as Anderson’s counsel. The reason: Anderson owes the firm more than $1 million. “The fact of the matter is nobody’s been paid,” says Christopher Mann, a Chadbourne attorney who represents Anderson along with Abbe Lowell and Keith Rosen. Federal prosecutors have opposed Chadbourne’s motion to turn the case over to the Federal Public Defender’s Office, arguing that Anderson has merely hidden his assets in a web of offshore corporations. One of those companies, Gold & Appel Transfer S.A., is also the subject of a related proceeding in U.S. Bankruptcy Court for the District of Columbia. Dickstein Shapiro Morin & Oshinsky’s Daniel Litt and David Tayman are representing the liquidator in that case. Anderson is represented in the bankruptcy case by Stephen Leach, an attorney at Leach Travell in Vienna, Va. In a telephone interview, Leach declined to comment on his own fee arrangements with Anderson.
Jason McLure can be contacted at [email protected]

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