Goldman Sachs, Cisco Systems, Henry Paulsen, IRS and U.S. Government, Sued
for Tax and Bankruptcy Fraud -- Fitzgerald's Office to Defend Government
March 28, 2007 (Press Release) --
CHICAGO, March 28 -- High-profile United States Attorney Patrick Fitzgerald's office is defending three employees of the Internal Revenue Service (IRS) and U.S. Attorney Lynne Murphy for their part in a purported $9 million tax fraud. They have been sued in the Northern District of Illinois for allegedly fabricating and falsifying IRS tax records.
According to the suit, one Michael Henry purchased $8 million of stock in American Metrocomm Communications, by paying $2 million cash and giving the company a non-recourse note in the amount of $6 million. Under current tax law, and as upheld in the landmark case of Crane v. Commissioner, 331 U.S. 1, 67 S.Ct. 1047(1947), a non-recourse debt is treated as a recourse debt for tax purposes. However, according to the suit Ms. Murphy (following the orders of her supervisor Michael J. Kearns and Eileen J. O'Connor, the Assistant Attorney General) instructed the IRS employees to ignore this ruling, as well as Commissioner v. Tufts, 461 U.S. 300(1983), and enter fraudulent information into the IRS computers showing Henry earning, instead of owing, $6 million. This caused the IRS system to erroneously create a deficiency notice for insufficient tax payments in excess of $9 million.
Henry has sued the United States Department of Justice, the IRS and all individuals involved, for fabricating and falsifying this deficiency notice and for ignoring the Supreme Court rulings. Based on the evidence that the IRS claims it has in its possession Goldman Sachs, Cisco Systems and Henry Paulsen along with the IRS and the U.S. Government withheld records and evidence in the Delaware bankruptcy filing of American Metrocomm Corporation. Henry is claiming civil damages for legal malpractice, bankruptcy fraud and damages against the government and its individual employees for creating and falsifying government tax records and for withholding documents from the bankruptcy court.
However, Ms. Murphy maintains that a U.S. attorney can commit fraud and ignore Supreme Court rulings while working for the U.S. Government, because the U.S. Government and its employees are immune to lawsuits under so-called “sovereign immunity.” In the meantime, Ms. Murphy continues to work on tax-related cases.
The Honorable David Coar has been assigned the case (06-C7087).
Any questions can be addressed to Michael Henry at 312-560-5291.
SOURCE Michael F. Henry -
According to the suit, one Michael Henry purchased $8 million of stock in American Metrocomm Communications, by paying $2 million cash and giving the company a non-recourse note in the amount of $6 million. Under current tax law, and as upheld in the landmark case of Crane v. Commissioner, 331 U.S. 1, 67 S.Ct. 1047(1947), a non-recourse debt is treated as a recourse debt for tax purposes. However, according to the suit Ms. Murphy (following the orders of her supervisor Michael J. Kearns and Eileen J. O'Connor, the Assistant Attorney General) instructed the IRS employees to ignore this ruling, as well as Commissioner v. Tufts, 461 U.S. 300(1983), and enter fraudulent information into the IRS computers showing Henry earning, instead of owing, $6 million. This caused the IRS system to erroneously create a deficiency notice for insufficient tax payments in excess of $9 million.
Henry has sued the United States Department of Justice, the IRS and all individuals involved, for fabricating and falsifying this deficiency notice and for ignoring the Supreme Court rulings. Based on the evidence that the IRS claims it has in its possession Goldman Sachs, Cisco Systems and Henry Paulsen along with the IRS and the U.S. Government withheld records and evidence in the Delaware bankruptcy filing of American Metrocomm Corporation. Henry is claiming civil damages for legal malpractice, bankruptcy fraud and damages against the government and its individual employees for creating and falsifying government tax records and for withholding documents from the bankruptcy court.
However, Ms. Murphy maintains that a U.S. attorney can commit fraud and ignore Supreme Court rulings while working for the U.S. Government, because the U.S. Government and its employees are immune to lawsuits under so-called “sovereign immunity.” In the meantime, Ms. Murphy continues to work on tax-related cases.
The Honorable David Coar has been assigned the case (06-C7087).
Any questions can be addressed to Michael Henry at 312-560-5291.
SOURCE Michael F. Henry -
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