I TRIED TO RESOLVE THIS IN A DIFFERENT MANNER BUT HAD NO LUCK. THIS IS APPARENTLY MY ONLY RECOURSE.
I AM OF THE OPINION THAT THIS CONCERNS EVERY COMEDIAN AND DECENT CLUB OWNER IN THE COMEDY BUSINESS. I THINK IT CERTAINLY SHOULD INTEREST ANYONE THAT WORKS FOR - OR WITH - ANY BUSINESS THAT HAS "FUNNY BONE" IN ITS NAME. IF NOTHING ELSE, MAYBE THE VOYEUR IN YOU WILL ENJOY THE SORDID TALE OF A COMIC TRYING TO MAKE A LIVING AND GETTING "BONED".
My intention is not to seem whiny, so I apologize if I do. These are my opinions.
Feel free to pass the link along to any comedians, agents, managers, media etc. that you think should know about it. They do these kind of things to comedians because they think they can get away with it without any repercussions. They think/know another comedian will come along and work for them thinking that it won't happen to them too. It will.
Thanks in advance.
Setting:
The Reno Funny Bone - week of September 5th-9th, 2007
Cast:
Peter Berman - comedian
Michael E. Kohn - Owner of the Reno Funny Bone. Also involved in Boise, Shreveport, and Missouri Funny Bones.
Pat Mack - Manager of Boise Funny Bone. Booker. He booked me into the Reno room.
Jason Ishee - Owner of the Reno Funny Bone. Also involved in Boise, Shreveport, and Missouri Funny Bones.
Lee - Manager of the NOW CLOSED Reno Bone. Nice guy. He never calls me back. Ever.
Various Other Players
THE STORY:
OK. I worked the Reno Funny Bone the week of September 5th - 9th. I knew the club was not doing well as far as crowds etc., so I went in for way less money than normal. That was probably my first (working Reno) and second (for less Money) mistakes. A very good friend of mine did the room about a month before, and said the crowds were thin, but he got paid ok etc. You have all probably been there before. Trying to make some money at a club that is not as good as others.
The following is a brief timeline of events that have led up to this point. If you read all the way through you will see that I have included some emails, letters, links as well as some other information for you to check out.
Long and short of it. The check they gave me bounced.
I called the Reno club and the Manager, Lee, several times and could not get a call back. NO CALL BACK. I also called Pat Mack, the Manager of their Boise room and the person who booked me into Reno, several times and could not get a call back. When I finally did reach Pat, he told me that one of the Owners, Jason Ishee, is a great guy and "he will take care of the bad check as soon as he finds out about the check not clearing". In my opinion, Pat said it like that was a good quality about Jason, not WHAT HE SHOULD DO as the Owner of the club.
I am not sure about the exact particulars, but it is widely believed/understood that the same people own the Reno, Boise, and Shreveport Funny Bones. No employee or Manager from any of these clubs would give me a phone number or contact information to Jason or the other Owner (Michael Kohn). Basically nobody would help me figure out a way to get paid.
It took me quite a bit of work, but I found Jason's number on my own. Back to that in a minute.
I finally spoke to Lee and he referred me to ANOTHER Owner of the Reno Funny Bone, Michael E. Kohn. He said he had talked to Michael about my check and unfortunately did not have any kind of answer for me. He finally provided me with a "corporate" phone number that NO ONE EVER ANSWERED and only went to voicemail. I LEFT SEVERAL MESSAGES THAT NO ONE EVER RETURNED. EVER.
A COUPLE OF WEEKS GO BY. THEY CONSIST OF ME LEAVING MESSAGES WITH MICHAEL KOHN THAT DO NOT GET RETURNED, GOING TO BANK OF AMERICA TO SEE IF THE FUNDS ARE AVAILABLE (they weren't), AND TRYING TO FIGURE OUT A WAY TO GET IN TOUCH WITH SOMEONE THAT WOULD PAY ME.
I resist the temptation to start bad mouthing these people to other comics. I didn't call the comics that were working at their clubs the next couple of weeks and tell them how hard it was to get these guys to pay me. I didn't call them and suggest they do not do the gigs because they might not get paid. I, quite honestly, just wanted to get paid.
I really thought that these guys were operating a legitimate comedy club and would honor their agreements to pay comics that worked for them. My check bounced, I am out the air fare that I paid to get up to Reno and back, and I have financial responsibilities that I was going to take care of with MONEY THAT I EARNED FROM WORKING FOR PAY.
I finally was able to get someone to provide me with a different number for Michael E. Kohn. I think it was his cell phone. I called him on a Thursday. Michael answered, acted like he had no idea what was going on. Strange since Lee told me he had had several conversations with Michael about the situation. Michael should have known what was going on because by this point the Reno Funny Bone had closed.
Michael Kohn said he would "wire the money into my bank account on Monday" and he also promised he would send me an email and fax confirming our agreement. HE NEVER SENT THE EMAIL OR FAX, AND HE NEVER WIRED THE MONEY INTO MY ACCOUNT. Michael Kohn also never bothered to give me a phone call and explain why he wasn't able to follow through with his promise.
I called Michael on the cell phone number that I had that Monday, but the phone had a recording on it that it had been disconnected. That recording was on there for over a week.
Now I am at the point where I have a phone number for Jason Ishee and am able to get in touch with him. I call Jason on the phone and he was a little upset that all sorts of people were calling him about Reno. He told me he had nothing to do with Reno and that he had sold his part of the club to his partner, Michael Kohn, two months prior.
My personal opinion, Michael Kohn is a genius for buying out his partner in Reno for a club that is sinking fast, but staying involved with that same partner in Boise and Shreveport. You figure it out. Nothing shady I am sure.
I think it is interesting to note that at this point in time I find out that Michael Kohn is a disbarred Missouri attorney that had to go to jail for a fraud case involving the IRS. I think this is the first time in my life that I sided with the IRS. You would too.
Meanwhile on the phone, Jason wondered why people kept calling him about Reno. I told him I was calling because Pat Mack, his Boise Manager and the guy that booked me into Reno told me Jason was the Owner and "would take care of my check as soon as he found out about it." Jason told me in fairness to Pat, the transfer was done quietly and many people did not know about it. Apparently not even his Manager. Maybe that is why people were calling Jason - because they thought he was the Owner.
Jason Ishee is also the only person listed as the owner of the Reno Funny Bone on any official documents with the State of Nevada.
TO HIS CREDIT - Jason did apologize a couple of times and said he would speak to Michael, see what was up and try to figure it out. He even promised me on several occasions/telephone calls that he will "make sure this thing gets taken car of one way or another - eventually." Maybe he will be true to his word. Maybe he won't. If jason was truly sorry or truly felt bad, then perhaps he would/should just pay me what is due me with money from one of the other Funny Bone clubs that he is partners with Michael Kohn in (Boise and Shreveport).
All I know is, lots of people with the Funny Bone are partners in one way or another with Michael Kohn, but nobody feels the need to make sure this guy does not tarnish their reputation or the reputation of their company. Quite honestly, I think it is a reflection on how they think about comedians and what kind of value they have for us. Not much is what it seems like.
Talking to Jason Ishee and Michael Kohn are two totally different experiences. Jason is not getting me my money, but at least he says what is happening is wrong, he is sorry for what happened and says he will try to figure it out. Michael Kohn said he is going to wire me the money and doesn't and won't even return a phone call or apologize. He won't even man up and return a phone call.
Quick recap:
Bounced check.
Very difficult getting anyone to take responsibility for paying me.
Nobody making a plan on how to right this situation.
At this point, I finally find a way through the maze of a phone system that Michael Kohn has at his office and I speak to a human being. I hold on the line for 15 minutes to talk to Michael. The following is an EXACT quote of what Michael Kohn says to me after making me wait 15 minutes to speak to him and after he bounced my check, found out about it and then failed to wire the money into my account as he promised. "Peter....., what am I going to do with you?" To which I replied, "How about pay me!"
Michael Kohn went on to say that he had creditors up the ass from Reno, couldn't pay me, and told me that I was dealing with an LLC. I took that to mean in legal-ese that since I was dealing with an LLC he did not have to pay me and I could go screw myself.
Michael Kohn said he would talk to Jason Ishee to see how they could pay me and then he'd call me back. I told him that Jason said he had nothing to do with Reno and that I should be dealing directly with Michael. He again said he had to talk to Jason and would call me. He never did call me back.
I called Jason, told him what happened and said I would be glad to do a 3-way call so that we could all be sharing the same story. Jason was always a little leery of me relaying what took place in my brief conversations with Michael. We never did the 3-way call.
I also came to find out that the LLC that was the Funny Bone Comedy Club of Reno had gone into default status in July. Well before I worked there the first week of September, so I am not sure if I even "was dealing with an LLC" or just Michael Kohn, the authorized signer on the bank account that wrote me the check or Jason Ishee, the person listed on the legal documents with the sate of Nevada, or even the Funny Bone company in general since Michael Kohn is listed on various documents with that company name with several different Secretary of States offices.
We are now rounding the corner on this baby. I am working in Westport, Mo (the St. Louis Funny Bone) earlier in October. The Westport people told me they have nothing to do with the Reno room and do not provide me with any info whatsoever on how to reach Michael Kohn. This turns out to be strange to me since I end up finding out that Michael Kohn is listed as the President of many different Funny Bone LLC's and is on the Board of Directors. Why is everyone protecting such a bad person AND doing business with him?!
Well Michael Kohn's office is in Missouri, so I go see him. I calmly walk into his office and asked for my money that he promised to pay me. No threats from me or even a raised voice. First, he tells me he had tried to call me. NEVER HAPPENED. He then says he doesn't have the money and offers no plan or apology. He again tells me I "am dealing with an LLC, so........ "
Michael, the expert disbarred attorney must not know theLLC was in default as of July.
GET THIS MOVE. Michael asks me "Are you working in Westport this week?" I reply, "Yeah, they pay me." He then says, "You won't be working there anymore." Contrary to other people's opinions, Michael Kohn does think he has something to do with the Westport Funny Bone. Well, as it turns out he is listed as the President of the company and on its Board of Directors with the Missouri Secretary of State's office. All the lies and misdirections are truly digusting and exhausting.
THEN MICHAEL CALLS THE COPS ON ME and tells them he has a creditor in his office that is uninvited and refuses to leave. HE WON'T MAKE GOOD ON THE CHECK, THREATENS TO TAKE WORK AWAY FROM ME, AND THEN CALLS THE COPS? Classy. Very classy. That is what I told him, too. After he called the cops this douche invited me to sit down and wait for the cops. i didn't want to give him the satisfaction of pressing tresspassing charges, so I finally decided to leave. As I was leaving this arrogant prick bastard said "don't leave now, the cops are coming". Michael Kohn is a thief that does not make good on his commitments or promises and he calls the cops on me.
I called Jason and told him about my meeting with Michael. He apologized again and said he would make sure it got resolved somehow. Jason is good at apologizing and doing nothing. He must have to do it often.
THE LATEST:
Well everybody, it has NOT BEEN RESOLVED and I HAVE NOT BEEN PAID.
I sent Michael Kohn a letter demanding payment (you can see it below) and he did not respond to it or the telephone calls that I left for him.
I called Westport and they feel bad, but "have nothing to do with that room". Too bad as I actually like many of those people.
I called Jason, he said he is going to Missouri this week and will see what is up. I called him a couple of times and he has not retuned my calls. I guess nothing is up. Jason has said to me on more than one occasion that just because "someone has the word owner next to their name that people think they have tons of money". I do not know what to even say to that crap. i just want the money for the WROK THAT I DID. Nothing more and nothing less.
I called the Executive Offices of the Sand Regency Hotel and Casino in Reno. it i where the Funny Bone Reno was located. Apparently jason ishee and Michael Kohn owe them a bunch of money as well. The person that i spoke to shares my opinion of jason and Michael as being a couple of dishonest hustlers that do not make good on thier debts and resposibilities. the hotel and casino is going to move ahead with legal action or debt collection. They have the resources and means to be able to do such a thing.
I know this sounds cliché, but I have a wife and kids that I support. I did the work. I want to be paid. This sucks.
While I was doing research on Michael Kohn, I found out that his wife (I think it is his wife since it is listed as one of his addresses) recently made a $2,500 donation to Barack Obama's campaign. I am sure he appreciates the money. I know I would.
If anyone knows Michael Kohn, Jason Ishee or any of the other players in this scenario, I would ask you to please contact them and ask them to do the right thing and pay me.
If you are a comic, employee, provider of services to the Funny Bone, I suggest you think twice about your financial arrangement with the company and make sure Michael E. Kohn is not the one responsible for paying you.
If you are one of the people that own/manage/run one of the other reputable Funny Bone Comedy Clubs in the U.S. and are at all concerned that this guy (these people) are ruining your good name, then call whomever you deal with on the "Funny Bone" level and tell them to tell Michael E. Kohn to make good with the comedians and people that he owes money to.
I waited and waited before going "public" with all this, but I think others need to know.
THANKS.
Be well.
Peter
**
IF AND WHEN I AM PAID IN FULL I WILL BE SURE TO POST HOW ALL THAT WENT DOWN AS WELL.
FEEL FREE TO LOOK AT SOME OF THE INTERESTING EXCHANGES AND CORRESPONDENCES THAT FOLLOW.
***********************************
************************************
----- Original Message -----
From: Peter Berman
To: Boise Funny Bone ; Pat Mack
Sent: Saturday, September 22, 2007 6:02 PM
Subject: Re: RENO
Pat,
Huge bummer about there not being enough funds in the Funny Bone's account to cover my pay check.
Just keeping you in the loop. I understand you are not responsible for the Reno books, but you did book me in there for the week so I thought you should know what has been going on.
Obviously it sucks because I would like to be paid for the work that I showed up and did. Work I did - expecting to be paid the amount that we agreed upon - like every other reputable comedy club in America that cares about its reputation and how it treats comedians.
I would ask that you to please let the owners know the content of this e-mail when you speak to them.
Nothing has been resolved or really even moved forward an inch as it relates to me getting my money/check cashed for the week that I did in Reno. I am in possession of a check for $1300 that I have been unable to cash since the day it was written to me - September 9th. The MC and Middle act that week were paid in full in cash. I talked to Lee and he said he had not heard back from the Owners. Correction, I guess he heard back from Jason (the Owner that you said would def. take care of this as soon as he heard about it), and he told Lee to talk to Michael Kohn. Apparently Michael does not want to deal with it either because Lee said that he has not heard back from Michael. I am truly surprised that making sure comedians are paid is not a top priority for the ownership of the Funny Bone. I left Michael a couple of messages and have not heard back from him either. It has been two weeks, I have been super cool about this, and kept it between myself and you guys. I have tried every possible avenue to get the money that is rightly due me. If I do not hear from Michael or Jason early on Monday telling me exactly when I will be getting my money, I will be contacting the District Attorney in Reno's Fraudulent Check Department ( tel. 775-789-7171). Apparently it is a felony to write bad checks. I have a record of all the phone calls that I have made to you, Lee, Shreveport trying to figure this out, as well as all the days that I have gone into the Bank of America checking to see if the funds were available. I have not done so yet, but I will also be letting comics know (blogging, phone calls as well as comedian sites like Sheckymagazine.com) that the people that own the Boise, Reno, Shreveport Funny Bones do not have enough money in their account to pay me AND do not have the courtesy of letting me know when I can even expect to be paid. Not a good thing when comics are working for the money. I will also let them know when/how/if it gets resolved. I would imagine that the Owners of the other Funny Bones would not want their reputation tarnished by the actions of the people that own the Funny Bones that I mentioned. Comics should know that if they show up to work for a week that they might not be getting paid.
Nothing personal as I know you and Lee do not own the Funny Bone. I also know things happen financially for people. Hell, that is why I want/need the money so badly. I have financial obligations, and I was expecting to use the pay for the week in Reno to meet those obligations. I just can not believe that for 2 weeks I have not been able to get paid for the work that I did and it seems like the Owners of the club either do not care, are not concerned, or appalled that a headliner comedian (or any comic for that matter) that worked for them is having difficulty getting paid.
Thanks for the offer to work the Boise Funny Bone in July of next year. I will have to pass on that opportunity due to this current situation. I am disappointed because I really like the room and wanted to come back. For the record, the last time I worked at the Boise Bone I had a check not clear for almost 2 months......
I would truly appreciate ANY help you can give me in resolving this matter.
If either owner (Jason OR Michael) wants to reach me, this is my e-mail and the best phone number to reach me at is
310-704-6803.
peter berman
----- Original Message -----
From: "Boise Funny Bone" <laughsatboisefunnybonedotcom>
Sent: Saturday, September 15, 2007 2:42 PM
Subject: RENO
>I talked to Lee on Friday afternoon when he called me back and he said
> he would call you. I have no control over that account except for
> booking, Lee is responsible for his checks. I am out of town until Wed
> dealing with my late father-in laws estate.
>
> Pat
>
> --
> The Funny Bone Comedy Club
> 405 S. 8th St. 110
> Boise, Idaho 83702
> p. 208-331-2663
> f. 208-331-2604
> boisefunnybone.com
*************************************************
************************************************
************************************************
----- Original Message -----
From: mattbehrensfbataoldotcom
To: 'Peter Berman"
Sent: Wednesday, September 26, 2007 12:32 AM
Subject: RE: LITTLE HELP
We have nothing to do with that club...
I am so sorry, but please understand that it has nothing to do with Westport.
Matt
From: Peter Berman
Sent: Wednesday, September 26, 2007 12:09 AM
To: Matt Behrens
Subject: LITTLE HELP
Any ideas on how to get in touch with ANYONE that has ANYTHING to do with the ownership of the Reno (or Boise/Shreveport ) Bone. No movement at ALL with my check and today I found out they just closed the Reno Bone. I want my fucking money and have no idea where/who/how to get it. Any leads would be appreciated..... This is great for the company name.
*************************************************
*************************************************
I guess it is true, the Funny Bone in Westport (St. Louis, MO) does not have anything to with the Funny Bone in Reno other than they have the same name. In fact, all the years that I have worked at the Westport Funny Bone I have never heard of or met Michael Kohn. HOWEVER, if you go to the Missouri Secretary of State's website and search "Funny Bone" you will come up with 34 returns and many/most of them have Michael E. Kohn listed on them.
IF YOU GO to THIS LINK to the Missouri Secretary of State for WP Funny Bone you will see they filed an Annual Registration Report in April of 2007 and it lists Michael E. Kohn as President and Gerald Kubach as Secretary. They are also both listed on the Board of Directors.
I DO NOT THINK THAT THE WESTPORT FUNNY BONE SHOULD BE PAYING OFF MICHAEL KOHN's financial obligations. I am not sure to suggest that they do not have anything to do with one another, when he is listed all over their corporate documents, is totally fair either. I could not even get a telephone number or address for the guy from anyone at the Westport club. ISN'T MICHAEL KOHN DAMAGING THE FUNNY BONE NAME IN SOME WAY BY NOT PAYING COMEDIANS THAT SHOWED UP AND WORKED FOR THEM? He does not even return a phone call, apologize, or suggest a plan to make the situation right. I think that should concern anyone associated with the Funny Bone name. Maybe it does concern them, but nobody from any part of the Funny Bone has helped me to get paid. YOU BE THE JUDGE, though.
******************************************************
******************************************************
This is a copy of the letter that I sent to Michael Kohn demanding payment. No reply to my letter or phone calls follwing up this request.
***************************************************
****************************************************
RE: Payment for Check 5369 retuned NSF
CERTIFIED MAIL
Michael E. Kohn
7800 Maryland Avenue
Clayton, MO 63105
Dear Michael E. Kohn,
I am writing to you to formally request payment for check 5369 that was written to me on September 9, 2007 and retuned NSF. The amount of the check is $1,300 plus $25 in returned check fees for a total of $1325.
You said it would be in my account no later than Monday, October 1st. Additionally, you asked for my bank routing number and account number in order to complete the transaction and you promised to send a fax and email with a PDF attachment outlining your promise. I have not received that payment, your fax or email.
I am required by law to give you a five day grace period from the receipt of this letter to pay off the bad check. I have been in correspondence about this matter with the Reno, NV Police Department as well as the Fraud Check Diversion Program at the Washoe Count District Attorney's Office.
If I do not receive payment in full by cashiers check or money order, in the 5 day grace period as period previously stated, I will be submitting evidence for a criminal complaint to the Nevada agencies that I mentioned. I will also be filing Small Claims actions in Missouri and Nevada.
I know that you used to be an attorney in Missouri and probably have a general knowledge of most criminal codes, but I thought you would like to review some information that the Washoe County District Attorney forwarded to me about passing fraudulent checks. I have attached it on the following page.
Sincerely,
Peter H. Berman
¶ Nevada laws:
Writing or passing a fraudulent check is covered by Nevada Revised Statutes. In Nevada, the maker of a bad check is presumed to have intent to defraud if the check is drawn on an account which does not exist, if he failed to pay the holder of the bad check the full amount due plus any handling charges within five (5) days after receiving notice that the check is dishonored, or if the notice of refusal of payment sent to the maker by registered or certified mail at an address printed or written on the check is returned because of non delivery; see Nevada Revised Statutes 205.132, 597.960, 205.130, et seq.)
Writing a check or monetary note without sufficient funds, or writing a check for an account that is closed, or illegally placing a "stop payment" thereon and obtaining services or a product(s) based upon that fraudulent or illegitimate check may be a crime. The key is whether or not the defaulting party intends to provide immediate restitution without delay.</B>
Not paying the amount due when immediately requested, or when the NSF check is discovered may constitute sufficient reason to believe that criminal intent was involved. As a suspect to any crime, you may be prosecuted. Parties whom receive dishonorable, illegitimate, and/or bogus checks have the option of initiating a civil and/or criminal complaint.
Additionally, merchants reserve the right to share the names, addresses, and other personal information appearing upon the bad check to other organizations, including, but not limited to, lending institutions in the area and county of the check writer, government data bases, Homeland Security Department, etc. In an era of security alerts, intentionally writing bad checks or avoiding restitution is not a good indicator of credit worthiness but may be suggestive of other problems.
Writing a deliberate and intentional bad check is not only a sign of unethical activity, but such conduct may be a precursor to or indicator of other serious issues such as fraudulent activity.
Nonetheless, it is the illegitimate, scheming, and dishonest person who, when presented evidence of their dishonored check, refuses or fails to pay the amount due when required. Fortunately, merchants and private parties have the opportunity to and should automatically share information collected about bad check writers. When appropriate, merchants may forward the names, addresses, and other data about suspected offenders to criminal law enforcement databases specializing in the enforcement and investigation of such crimes.
******************************************
******************************************
HERE IS A LITTE BIT MORE ABOUT MICHAEL KOHN
*********************************************
*********************************************
..>..>
..>
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT OF MISSOURI
RAYMOND W. GRUENDER
United States Attorney
|
NEWS RELEASE
|
|
For further information: Call Public Affairs Officer Jan Diltz at (314) 539-7719
|
.. -->--> -->--> -->--> -->--> -->--> -->.. --> --> --> --> --> --> --> --> --> --> -->July 17, 2002 For Immediate Release
CLAYTON TAX LAWYER PLEADS GUILTY TO OBSTRUCTING THE IRS
St. Louis, Missouri: A Clayton tax lawyer has pled guilty to obstructing the Internal Revenue Service, United States Attorney Ray Gruender announced today.
MICHAEL E. KOHN, 49, a Clayton, Missouri resident, pled guilty in United States District Court to a criminal tax charge stemming from his law practice as a tax attorney in Clayton. Kohn waived indictment and entered the guilty plea before U.S. District Judge Stephen N. Limbaugh who scheduled the sentencing for October 3, 2002.
Court documents show that Kohn engaged in his criminal conduct through his Clayton law practice, the Kohn Partnership. Kohn admitted that some of his legal fees were based on the amount of tax savings he generated for his clients and, as a result, he attempted to maximize the tax benefits in order to maximize fees he earned.
Kohn entered the guilty plea to an information in which he was charged with corruptly endeavoring to obstruct the Internal Revenue laws in order to attract clients and obtain fees in return for reducing clients' tax liabilities through fictitious transactions and other strategies which placed form over substance and lacked business purpose.
The information charges and Kohn admitted to preparing documents in a fictitious transaction to support a capital loss in the amount of approximately $1.4 million dollars for a married couple in St. Charles. The transaction centered on a financial instrument called a "debenture" which is similar to a bond and is sometimes used in transactions to allow an individual to convert that interest into another form of security such as a share of stock. Through the use of a fictitious debenture, Kohn helped the couple offset substantial gains which they had made on the sale of their funeral home business.
Kohn also admitted in documents filed with the Court that his criminal conduct involved other clients as well. For instance, he admitted that he caused a capital loss of $589,742 to be reported on a tax return for another client couple on the basis of another fictitious debenture transaction. The loss was designed by the defendant to offset the capital gain which they made on the sale of two Midas Muffler businesses. The defendant admitted the debenture transactions lacked any business purpose or economic substance and, in fact, the debentures were prepared over a year after they were allegedly issued.
Court documents show that Kohn has specialized in tax law through his over 20 years of practice. He has a masters of law in taxation from New York University and has held himself out as having special skills in the areas of tax planning and representation of clients before the Internal Revenue Service.
US Attorney Ray Gruender stated, "Kohn's well known expertise in the tax area makes Kohn's guilty plea all the more significant. The IRS estimates that many billions of dollars in taxes go unpaid every year. We cannot let skilled attorneys and accountants advise their clients to employ illegal tax shelters which drain public funds that then have to be made up by hard working Americans."
Al Patton, Special Agent-in-Charge of Internal Revenue Service Criminal Investigation in St. Louis stated, "It is an unacceptable practice to hold yourself out as a tax professional providing legitimate tax advice, when, in actuality, you are promoting certain tax strategies that rely upon fictitious transactions lacking business purpose and economic substance. To ensure confidence in our nation's tax system, the IRS has a responsibility to investigate and pursue prosecution of individuals including tax professionals who corruptly endeavor to obstruct and impede the due administration of the Internal Revenue laws. Our enforcement strategy to combat this and similar schemes is to focus on the promoters and clients who have willfully used these promotions to egregiously evade tax."
The charge to which Kohn pled guilty carries a maximum sentence of three years in prison and/or a fine of $250,000.
Gruender praised the work on the case by agents of the Internal Revenue Service Criminal Investigation Division for their efforts in concluding this complex investigation. Criminal Chief James Crowe and Assistant United States Attorney James Martin handled the case for the United States Attorney's Office. |
..>..>..>