WASHINGTON - Robert Wayne Hallock, an attorney from Chicago, was convicted by a federal judge today of tax evasion for attempting to hide from the government over $1 million obtained by selling fraudulent Certificates of Deposit (CD), the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment and evidence introduced at trial, in February 1997, Hallock, formerly a partner at the law firm of Kirkland & Ellis LLP, sold a fraudulent CD from which he received approximately $1.8 million dollars. In an attempt to hide that income from the government, Hallock funneled it through a Florida bank account in the name of Himmel & Grund, LLC and hired an associate to use the funds from that bank account to purchase hundreds of thousands of dollars in cashier’s checks that Hallock used to spend on personal expenditures.
Hallock’s expenditures included, among other things, $150,000 in checks to his girlfriend, and her parents; and a $100,000 honeymoon aboard a private yacht. In addition, Hallock opened additional bank accounts with the funds from the sale of the CD and used those bank accounts to make personal expenditures. According to evidence introduced at trial, Hallock evaded over $400,000 in income tax for 1997.
“People who hide their income and evade their federal tax obligations will be prosecuted and convicted,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “The Department of Justice and the Internal Revenue Service are working vigorously to defend the interests of honest taxpayers.”
Hallock faces a maximum sentence of five years in prison and a $250,000 fine, together with the costs of prosecution. United States District Judge Matthew F. Kennelly scheduled sentencing for February 15, 2007.
“The prosecution of individuals who intentionally conceal income and evade taxes is a key element of the IRS Enforcement Strategy and signals our intention to assure confidence in our tax system,” stated Nancy Jardini, IRS Chief, Criminal Investigation. “Individual actions such as those of Mr. Hallock add to the nation’s tax gap, which is defined as the difference between what taxpayers owe and what they pay the government. Today’s conviction sends a strong message that the IRS is committed to closing that gap by enforcing the tax laws.”
The case was prosecuted by Assistant United States Attorney Susan Coppedge from Atlanta and Justice Department Tax Division Trial Attorney Charles E. Pell. The investigation was conducted by IRS Criminal Investigation special agents.
More information about the Justice Department’s efforts against income tax evaders can be found at http://www.usdoj.gov/tax/taxpress2006.htm. Information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.