A press release from the U.S. Attorney's Office in the Southern District of New York reveals that the ex-Arnold & Porter partner is Peter Cinquegrani. He pled guilty in the U.S. District Court for the Southern District of New York to conspiracy to commit tax fraud, aiding and abetting tax evasion, and aiding in the submission of false and fraudulent documents to the IRS.
Cinquegrani practiced at Arnold & Porter from 1986 through 1993 and from 1997 through April 2007. In the interim, he worked at the IRS.
According to the press release, Cinquegrani marketed fraudulent tax shelters to clients of Ernst & Young through a group at the accounting firm devoted to designing, marketing, and implementing high-fee tax strategies for individual clients, including tax shelters that could be used to reduce or defer taxes. Cinquegrani resides in Baltimore, Md., and the D.C. Bar still lists him as an active member.
The Internal Revenue Service released a statement this afternoon announcing that it has reached a settlement with Arnold & Porter over the firm’s failure to comply with tax shelter registration requirements and its involvement in a number of tax shelter transactions in 2000, 2001, and 2002. According to the press release, the firm has subsequently put into place “a comprehensive compliance program designed to assure ongoing adherence to all tax shelter disclosure and list maintenance requirements of the Internal Revenue Code, and related laws.”
Arnold & Porter addressed the matter in this e-mailed statement:
“Today a former Arnold & Porter partner pled guilty to charges that arose in connection with a government investigation of certain tax shelter transactions that took place in the time period 2000 to 2002. We have cooperated fully with the government. The firm previously entered a civil settlement with the Internal Revenue Service in connection with these transactions, and has resolved all related private civil claims.
Arnold & Porter is committed to the highest level of professional standards and ethical conduct. To that end, the Firm has strengthened its internal tax compliance procedures. Arnold & Porter will continue to provide our clients outstanding counsel and service.”
The firm did not immediately give details about the charges or identify the former partner.