Attorney Faces Legal Malpractice Charges in Addition to Fraud
Federal prosecutors have asked a court to permanently disbar a St. Louis attorney who has been sued by some of his former clients for legal malpractice for promoting allegedly fraudulent tax schemes. The lawyer is one of many tax preparers across the country facing federal charges brought by the U.S. Department of Justice. Federal prosecutors say that the attorney sold fraudulent schemes to mostly wealthy clients in Missouri. The clients used the attorney’s charitable-contribution scheme to claim more than $750,000 in tax deductions for alleged contributions to two St. Louis-area private schools that actually received less than $2,000.
The attorney also faces charges for helping some clients evade Roth IRA contribution limits who later withdrew funds from these accounts without paying income tax. Two clients, a couple who owned their own business, participated in this scheme, and the IRS later audited and fined them for tax evasion. The couple has sued their former lawyer for legal malpractice, and the case is scheduled to go on trial in the near future.
Simply put, legal malpractice is a legal term for lawyers who cause harm to a client through negligence, breach of contract or breach of fiduciary duty. If you live in California and have reason to believe that your attorney is behaving inappropriately, call California legal malpractice lawyer Samer Habbas today at 888.848.5084. Legal malpractice cases are usually quite complicated, and an experienced Southern California legal malpractice attorney such as Mr. Habbas can investigate your case and determine whether you should proceed. For more information, call Los Angeles legal malpractice lawyer Samer Habbas today.