A lawyer pursued by federal investigators for marketing allegedly bogus tax shelters was indicted Wednesday for failing to report more than $3 million in income he diverted from Herrick Feinstein and defrauding the Internal Revenue Service as it tried to investigate the shelters.
Harold Levine was charged by the Southern District U.S. Attorney’s Office with trying to impede and obstruct the IRS, conspiracy to defraud the IRS, tax evasion, making false statements and wire fraud.
Levine, who became head of the tax practice group at Moritt Hock & Hamroff after leaving Herrick Feinstein, was charged along with Ronald Katz, an accountant with a Manhattan-based firm, who was accused of failing to report some $1.2 million in income.
According to the indictment, Katz owned King Louie Enterprises, a limited liability company that was used by the pair to hold fee income diverted from the law firm and derived from tax shelters promoted and sold by Levine. The shelters allegedly generated phony losses to eliminate the obligation to pay capital gains taxes.
Levine was sued by the federal government in 2014 to block his promotion of shelters at Moritt Hock like the ones he allegedly promoted while at his previous job chairing the tax practice group at Herrick Feinstein. That action was stayed by stipulation in July 2015.
Herrick Feinstein had demanded Levine’s resignation in September 2012. He joined Moritt Hock & Hamroff the following month and left in June to take a position with one of his clients, according to the firm.