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View Diary: Shocker: Huge Companies Cost U.S. Billions Exploiting Tax Break Designed For Farmers Swapping Horses (86 comments)

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  •  Clarification (2+ / 0-)
    Recommended by:
    Ian Reifowitz, Argyrios
    A subsidiary of JP Morgan recently went on trial for allowing account holders various kinds of access to the money from these sorts of sales while the funds were supposed to be in escrow
    It looks like it sold an escrow business, and the buyer subsequently sued.  ie, this was a civil suit.

    http://www.bloomberg.com/...

    •  Take a look at the article (0+ / 0-)

      Maybe you can get some clarification. The reporter talks about what look to me like findings of law, but I could be wrong.

      •  The reporter got it right; you got it wrong (2+ / 0-)
        Recommended by:
        Ian Reifowitz, Argyrios

        1.  A JP Morgan affilate, JPEX, facilitated 1031 exchanges for its clients (essentially, it was supposed to act as an escrow agent).
        2.  JPEX was sold, and the buyer sued JP Morgan, alleging that JPEX had not, prior to purchase, been following the rules and had been allowing its clients access to funds that should have been escrowed.
        3.  The court dismissed the case, but the court filings named several JPEX clients who were alleged to have had improper access to escrowed funds.
        4.  The article notes that several of JPEX's clients may be under examination by the IRS

        There was no criminal trial and the suit was dismissed.  The outcome of the IRS examination is unknown (and probably won't be known, unless they end up in court).

        "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

        by Old Left Good Left on Mon Jan 07, 2013 at 01:11:20 PM PST

        [ Parent ]

        •  I'm still not sure you're right about that. (0+ / 0-)

          From the article:

          JPMorgan said its employees never violated tax regulations.

          “The court agreed that our firm acted appropriately and that this business complied with all relevant tax laws at the time our firm owned it,” said Joseph Evangelisti, a company spokesman. The court agreed that our firm acted appropriately and that this business complied with all relevant tax laws at the time our firm owned it

          If it was a civil lawsuit, that would seem like an odd statement for a spokesman for the defendant to make. There was a civil suit brought to gain access to the information, but that's something else. The article isn't as clear as it could be here,
          •  Sorry, you're wrong. (0+ / 0-)

            The article is quite clear;  you just don't understand the issues raised by the article.

            "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

            by Old Left Good Left on Mon Jan 07, 2013 at 03:43:21 PM PST

            [ Parent ]

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