Standard News

Hide Advertisement
  • Business
  • Culture
  • News
  • Technology
  • Trending
Site logo
ADVERTISEMENT
ADVERTISEMENT

New York energy investor pleads guilty to $45 million tax scheme

By Reuters 2 min read
Manhattan businessman Morris Zukerman exits U.S Federal Court in the Manhattan borough of New York, U.S.

By Nate Raymond

NEW YORK (Reuters) – A New York energy investor pleaded guilty on Monday to charges that he engaged in a years-long scheme to avoid paying more than $45 million in income and other taxes stemming in part from his sale of an oil company.

Advertisement

Morris Zukerman, a former Morgan Stanley banker who serves as chairman of investment firm M.E. Zukerman & Co, pleaded guilty in Manhattan federal court to one count of tax evasion and one count of obstructing the Internal Revenue Service.

The plea came just a month after Zukerman, 72, was indicted following a two-year grand jury investigation. Under a plea deal, Zukerman agreed to not appeal any prison sentence of 7-1/4 years or less. His sentencing is set for Dec. 5.

“After years of finding every way to avoid his tax obligations, Zukerman has finally been forced to admit to his criminal tax evasion,” Manhattan U.S. Attorney Preet Bharara said in a statement.

A lawyer for Zukerman did not respond to a request for comment.

Zukerman worked at Morgan Stanley from 1972 to 1988 and served as joint head of the investment bank’s energy group before launching M.E. Zukerman & Co, which focused on investing in energy, natural resources and agriculture companies.

Prosecutors said Zukerman schemed to evade paying taxes on income earned on a 2008 sale of an oil company he co-owned through an M.E. Zukerman subsidiary with a publicly traded company that resulted in his firm receiving $130 million.

While the company was not named in court papers, around that same time Zukerman’s company sold a Texas-based firm called Penreco that was co-owned with ConocoPhillips.

Zukerman then transferred the sale’s proceeds to a trust and various corporations, including one from which he directed $50 million be used to buy paintings by European artists from the 15th to 19th centuries, prosecutors said.

He also claimed $1 million in fraudulent charitable contribution deductions in connection with the purchase of property on Black Island off Maine’s coast, prosecutors said.

The case is U.S. v. Zukerman, U.S. District Court, Southern District of New York, No. 16-cr-194.

(Reporting by Nate Raymond in New York; Editing by Tom Brown)

tagreuters.com2016binary_LYNXNPEC5Q1RP-VIEWIMAGE

tagreuters.com2016binary_LYNXNPEC5Q1RQ-VIEWIMAGE

Advertisement - Continue reading below

U.S. reports 279 Zika cases in pregnant women, Obama pushes Congress on funds
News
Reuters 4 min read

U.S. reports 279 Zika cases in pregnant women, Obama pushes Congress on funds

Arrest made in $3 million jewelry theft from rapper Drake’s tour bus
Entertainment
Reuters 2 min read

Arrest made in $3 million jewelry theft from rapper Drake’s tour bus

House rejects bill requiring carriers to share phone location
News
Reuters 2 min read

House rejects bill requiring carriers to share phone location

Colorado court picks jury for movie massacre lawsuit
News
Reuters 2 min read

Colorado court picks jury for movie massacre lawsuit

Trump in Washington for deposition in lawsuit against celebrity chef
News
Reuters 2 min read

Trump in Washington for deposition in lawsuit against celebrity chef

Jennifer Lawrence ranked world’s highest paid-actress for second year
Entertainment
Reuters 2 min read

Jennifer Lawrence ranked world’s highest paid-actress for second year

DiCaprio’s ‘Before The Flood’ aims to make climate a U.S. election issue
Entertainment
Reuters 2 min read

DiCaprio’s ‘Before The Flood’ aims to make climate a U.S. election issue

‘Don’t Breathe’ Frightens Competition at Labor Day Box Office
Entertainment
Reuters 2 min read

‘Don’t Breathe’ Frightens Competition at Labor Day Box Office

Spooky Paranormal Phenomenon In Michigan Will Thrill You
Trending
David Clarke 2 min read

Spooky Paranormal Phenomenon In Michigan Will Thrill You

Twitter cracks down after ‘Ghostbusters’ actor complains about abuse
Entertainment
Reuters 3 min read

Twitter cracks down after ‘Ghostbusters’ actor complains about abuse

load more Loading posts...

sidebar

ADVERTISEMENT
ADVERTISEMENT

sidebar-alt

  • About Us
  • Imprint
  • Contact Us
  • Terms of Service
  • Privacy Policy