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Federal prosecutors are calling it one of the largest tax evasion schemes in U.S. history. L.A. tax attorney Matthew Krane pleaded guilty in connection with a $36 million kickback scheme in which media mogul Haim Saban was steered into an illegal tax shelter. Under terms of the plea bargain, he will serve up to five years in prison. From the Business Journal:
Seattle federal prosecutors charged Krane in June with failing to pay taxes on the $36 million kickback he received from Seattle investment firm Quellos Group LLC. Krane received the money in exchange for bringing Saban into the illegal tax shelter, which allowed Saban to evade taxes on capital gains of $1.5 billion he made after selling his interest in the Fox Family Channel in 2001.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.