One hit wonder Right Said Fred had a minor hit a few years ago with his song “I’m too  Sexy for My Shirt.”    Now a New York court now gets to decide if former Citibank banker Debrahlee Lorenzana was literally fired for being too sexy for her shirts.  According to her lawsuit, Lorenzana claims that she was fired because her branch manager thought her outfits were too distracting to male co-workers.

Businesses have the right to establish dress codes but those requirements must be reasonable and uniformly enforced.  Lorenzana claims that managers told her that female co-workers were allowed to wear what they wanted because they were not attractive. She claims, however, that she was specifically forbidden to wear  heels and tailored business suits because her shapeliness made those clothing choices “too distracting” for co-workers and managers.

For its part, Citibank denies the allegations.

What does this mean for employers and employees? As noted above, courts will uphold reasonable dress codes. For example, no one would argue that bathing suits can be banned from the office. If a dress code is implemented, however, managers must insure that it is uniformly applied.  Make different rules because of someone’s figure and a costly lawsuit may result.

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Brian Mahany and Mahany & Ertl represent workers who suffer from discrimination or sexual harassment. We handle discrimination cases throughout Wisconsin and have successfully represented clients before state and federal courts, the Equal Employment Opportunity Commission (EEOC) and the Wisconsin Equal Rights Division. Attorney Mahany also represents workers in Maine and before the Maine Human Rights Commission.

Call attorney Brian Mahany or Christopher Ertl today for more information. We will gladly meet with you and help you determine whether you have a case.

Last month a jury in Portland, Oregon awarded a former Boy Scout $19.9 million in damages after finding the scouting organization allowed a scout leader to abuse  a scout.

Unfortunately, an organization of 6 million people is bound to have problems from time to time. And records show that this wasn’t the first case naming the Boy Scouts of America.

The point of this post is that sexual abuse can occur anywhere and anytime. At home, at church, in schools, in the doctor’s office, the dorm and even in the Boy Scouts. Unfortunately very few cases get reported and even fewer ever result in monetary damage claims against the abuser or other responsible parties. Sometimes the abuser is not caught but others may still be held responsible.

We hope that you never need our services but we are a resource for victims anywhere in Wisconsin. We know how to listen, have answers, and will tell you exactly what to expect. Let us help you obtain justice and closure.

Call partner Brian Mahany today directly at 414-704-6731 for a confidential, no fee consultation. Brian is a former police officer, prosecutor and director of the Family Violence Project.

Government tax authorities asking banks and credit card companies for information on foreign account holders is hardly news these days. The I.R.S. does it, so do Germany, Britain and many other countries. Officials want to know when their citizens transfer wealth overseas or open foreign accounts. Generally the practice is legal if the accounts and activity are disclosed. Australia, however, has taken their quest to root out unreported accounts to a new level.

Published news reports indicate that the Australia Tax Office is asking banks if any customers have merely asked about setting up foreign accounts.  “Asked,” not opened.

Assistant Tax Commissioner Malcolm Allen is quoted as saying that his agency will begin investigating bank customers that merely had offshore conversations with their bankers. This means merely mentioning to your banker that some of your money is stashed overseas or asking how one opens a bank account in the Caymans may get you audited. Even if you never actually open a foreign account!

Is there a lesson here? Absolutely!

Just ASKING QUESTIONS about offshore banking may get you audited. Obviously, complying with federal reporting requirements is always the single best approach to avoid unwanted scrutiny and possible prosecution. If you are unsure what to do, however, then “Don’t ask, Don’t tell” may be the best policy. It certainly is the best policy with respect to your banker. Do not ask about opening an offshore account and do not tell them if you have opened one without proper disclosure.

Government officials have long claimed that a tremendous amount of unreported offshore income never gets taxed each year. As long as there are “tax havens” and “secrecy jurisdictions,” the tax police will continue to be creative in their methods to ferret out these accounts.

Of course, offshore investing and banking is legal. Many invest overseas to diversify risk, thwart vexatious litigation risks at home or to to better keep their affairs private. The U.S. government requires Americans to disclose offshore accounts to the Treasury and report any foreign source income.

If you think offshore investing is for you, speak to a qualified lawyer, financial planner or CPA. Think twice, however, about talking to your banker. If you find yourself with existing unreported accounts or income, speak only to a lawyer. Financial planners and accountants are generally obligated to not disclose confidential client information but they can be compelled to answer questions in a formal investigation.

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MahanyLaw assists U.S. citizens protect their hard-earned wealth. We focus on global asset protection strategies.

At Mahany & Ertl, our lawyers have decades of experience helping clients with unreported income, unreported offshore accounts or ongoing audits. From compliance work, to audit defense, to U.S. Tax Court litigation to defense of tax evasion prosecutions, Mahany & Ertl is a full-service tax boutique law firm. We work tirelessly to keep our clients out of jail and minimize their tax obligations.

From our offices in Milwaukee, Brian Mahany & Christopher Ertl have protected the rights of people across the US. We also assist those with unreported accounts. Attorney Brian Mahany can be reached directly at 414-704-6731 or via email at brian@mahanyertl.com.

(reprinted from our sister firm, MahanyLaw’s blog. www.mahanylaw.com)

In January I wrote a piece titled “Do You Know Who Is Handling Your Money?”  That piece discussed how TV star Willie Adams (star of reality television show “Broke and Famous”) was now licensed to be a financial planner. Willie isn’t alone.

The newest entrant in my personal “Hall of Shame” is Kevin Trudeau.

Trudeau authored “Debt Cures: ‘They’ Don’t Want You to Know About.” Unfortunately. Mr. Trudeau has things he does not want you to know about either.

According to published reports, before writing self help personal finance books, Trudeau was charged with multiple counts of felony credit card fraud. Apparently he defrauded American Express out of $122, 735. This sum doesn’t include money swindled from Chemical and Citibank. Nor does it include the many people who paid $14.95 for his advice. According to Amazon.com, Trudeau has sold “millions” of books.

In fairness to Trudeau, he may not be just another common thief. At sentencing, his own lawyer cited a psychiatric report indicating Trudeau was disturbed. Very disturbed - mixed personality disorder and emotional disturbances. I am not sure what “disturbed” means in psychiatric terms but it doesn’t sound like he is fit to provide financial advice.

According to Trudeau’s mother, prior to stealing from banks, Trudeau was president of the Junior Clowns of America.

Whether a clown, thief or just plain crazy, Trudeau has no business writing books on personal finance.  Before you rely on a book or TV star turned financial planner for advice, talk to your accountant, lawyer or banker first. And never be afraid to ask questions.

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If you have already lost money to bad legal or financial advice, give us a call. We may be able to get all or a portion of your money back. Anywhere in the world.

Mahany & Ertl is located in Milwaukee, Wisconsin. We handle cases nationwide. Our asset recovery lawyers have represented clients in the U.S., Caribean, south america and the middle east. Call Brian directly at 414-704-6731 or by email at brian@mahanyertl.com

(A discussion of fraudulent conveyances)

by Brian Mahany

(Reprinted from our sister firm’s blog, MahanyLaw, www.mahanylaw.com)

It was inevitable - massive fraud in the government’s bailout program from 2008. The U.S. Troubled Assets Relief Program (or “TARP”) had it’s first major arrest. Charles Antonucci, former head of New York’s Park Avenue Bank, was indicted for fraud, embezzlement and misappropriation. What did he do? The feds say he attempted to take $11 million of bailout monies meant for the bank and spend it on himself.

Theft and fraud investigations are nothing new. But what noteworthy is Antonucci’s actions after the federal investigation began.  Knowing that he may be prosecuted and sued civilly for damages, Antonucci is alleged to have transferred his $348,000 home to his wife. On the same day he also “sold” his condo in Tampa to his son for $100. These transactions are what are commonly called “fraudulent conveyances” or “fraudulent transfers.”

Fraudsters frequently transfer assets - bank accounts, expensive cars and real property - into someone else’s name thinking that they can protect that property from seizure or a civil judgment. Unfortunately, that tactic often works.

Obtaining a judgment against a fraudster is usually quite easy. Often they will not answer complaints or comply with discovery demands for fear of incriminating themselves in a future criminal case. The bigger trick becomes collecting the judgment.

All states in the U.S. have adopted some type of fraudulent conveyance law. Those laws allow creditors (judgment holders) to pursue property transferred for less than proper consideration. Sadly, few lawyers have experience pursuing fraudulent conveyances. Billions of dollars of judgments go uncollected each year even though a properly trained lawyer could unwind these transfers and collect for victims.

In this case the transfers were so obvious that the courts will likely “unwind” the transfers to Antonucci’s wife and son and order the property to be sold and the proceeds used to pay any creditors. In many other cases, however, these transfers to family and friends go unchallenged.  The victim has a worthless judgment while the criminal still has his fancy yacht - that is, now his girlfriend’s yacht.

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Mahany & Ertl concentrates in asset recovery. Our fraud recovery lawyers understand fraudulent transfers and know how to find assets for victims.  We have participated in fraud cases throughout the United States and in the Middle East, Central America, the Caribbean and Europe.  Wherever a criminal may attempt to hide your money, our lawyers and former government special agents will do everything possible to get back your money.

From our offices in Milwaukee, Wisconsin, Attorneys Brian Mahany and Christopher Ertl are ready to help. Call Brian Mahany today at (414) 704-6731 (direct) or email him at brian@mahanyertl.com.  We will answer your questions and give you a realistic assessment of getting back your hard-earned money.

The term “clawback” is relatively new. In fact, you won’t find it in most dictionaries and even the on-line Wiktionary is quite vague in its definition; “Any recovery of a performance related payment based on discovery that the performance was not genuine.”  But ask the victim or former investor of Bernie Madoff or almost any other Ponzi scheme and the term will be well known.

Until a few years ago, the last victims to invest in a Ponzi schemes frequently had little hope of recovering any money. (For an excellent article on Ponzi schemes, see www.fraudsandscams.com)  The earliest investors in Ponzi schemes frequently get paid while the newer investors get nothing. Ponzi schemes rely on an ever broadening pyramid of new money coming in to pay off old investors. The base soon becomes so large that the pyramid collapses. The newest investors lose everything.

Until now.

U.S. courts are becoming increasingly sympathetic to efforts to “claw back” profits (and in rare cases, principal) from the earlier “winners.”  Is this fair? It depends on who you are.

For the losers in a Ponzi scheme, their only chance of recovery is getting some money from the earlier winners. The theory is that since the entire scheme was a fraud, allowing the earlier investors to receive profits is fundamentally unfair to the newest investors.  That sounds good BUT, many earlier investors, having no idea that the investment was a scam, long ago spent the profits they received.

The issue is likely to be litigated intensely for the next several years but clawbacks are being accepted with increasing frequency by the courts.

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Mahany & Ertl assists fraud victims throughout the United States recover monies taken by fraud. Asset recovery and fraud recovery is a unique area of law requiring a great deal of skill - skill in finding hidden assets and skill in collecting those assets for victims.

If you are a victim of a fraud or Ponzi scheme, give us a call. From our offices in Milwaukee, our asset recovery lawyers assist victims throughout the United States.  And when necessary, we will pursue assets anywhere in the world. To date our team has handled fraud cases in the Caribbean, Middle East, Europe, Central America and New Zealand.

Call partner Brian Mahany directly at 414-704-6731 or email him at brian@mahanyertl.com.

This tasty tidbit comes from published reports in the National Law Journal - Bimbo Bakeries USA is suing a former employee who took a job at rival Hostess Brands. Why? Because he is one a few people in the world who know the recipe for Thomas’ English Muffins.

What makes this case unique is that the suit was filed without any claim of wrongdoing by the former employee. Bimbo Bakeries filed the suit simply because they fear he “might” disclose the recipe.  Allowing this type of lawsuit represents a departure from the normal way lawsuits are filed. Courts normally settle disputes after someone has been accused of wrongdoing. Allowing this lawsuit to go forward potentially opens the floodgates to all types of litigation.

Worried that you might be the victim of discrimination at a new job? Perhaps you should sue them first before even showing up for your first day of work. Concerned that a former salesperson might violate a confidentially agreement and take customer lists with him? Sue everyone that quits or retires. One quickly gets the picture.

California has already rejected this type lawsuit seeking to block future potential harm. But will other states do? (Bimbo filed it’s lawsuit in Pennsylvania). If allowed to proceed, this could open the floodgates to more lawsuits and litigation.

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Mahany & Ertl represents Wisconsin workers and employers in disputes involving confidentiality agreements and non-compete agreements. We also assist workers with other employment issues.

A recent Wisconsin court decision made important changes to the enforceability of confidentiality and non-compete agreements. Call us for a confidential consultation if you have concerns, wish to protect important trade secrets or are a worker planning to work for a competitor. Our experienced lawyers represent workers and businesses throughout Wisconsin.

Call Brian Mahany today at (414) 704-6731 (direct) or email him at brian@mahanyertl.com

by Brian Mahany

Last summer I discussed the how the German government bribed a Liechtenstein bank employee to obtain confidential tax information - the names and addresses of German account holders with accounts at LGT Bank. What many did not know, however, was that Germany then apparently shared that illegally obtained information with other tax authorities, including the IRS. Guess what? The Germans are at it again.

In an apparent move to undermine Switzerland’s reputation as a tax haven for foreigners with unreported income, Germany publicly announced that it will pay bribes for secret account records. German Finance Minister Wolfgang Schauble announced last week in an interview with a German newspaper that “There is no future for bank secrecy.”  Meanwhile, German tax officials announced that they were paying the equivalent of $3.4 million to an informant for tax records of an estimated 1500 Germans with Swiss accountants.

More ominously, German officials said they would pay for information even if stolen or hacked and may again share that information with other governments.  The U.S. has long had laws that prevent private individuals and corporations from bribing foreign officials - the Foreign Corrupt Practices Act. But what happens when the government itself turns a blind eye to corruption by the government itself?

The U.S. has not yet acknowledged bribing foreigners for stolen or hacked tax records of U.S. citizens with foreign accounts or income. But taking data from the Germans would essentially be sanctioning such illegal behavior.

Having foreign accounts and foreign source income is not illegal for Americans. But not declaring those accounts or paying tax on foreign income is. Like Germany, the United States has a huge problem with unreported income and tax evasion. No matter what your political views on taxes, the government claims it is entitled to know where your money is and how much you earn.  The question today is how far will the government go to find out?

For those with unreported accounts, the answer is pretty far.

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Brian Mahany, Christopher Ertl and the tax attorneys at Mahany & Ertl help businesses and individuals with tax problems. Criminal tax investigations? Non-filers? Compliance, collections and tax lien problems? Audits? Tax Evasion? We can help.  Calling (414) 704-6731 or emailing brian@mahanylaw.com connects you directly to attorney Brian Mahany.

Our offices are in Milwaukee, Portland, Maine and California. Our services are available anywhere in the  United States.

Mahany & Ertl - Milwaukee and America’s Power Tax Lawyers

By Brian Mahany

The concept of fining people for taking frivolous tax positions sounds pretty good at first. The California Franchise Tax Board announced it was going to fine taxpayers $5000 per offense for those who make “frivolous” arguments or attempt to “delay or impede the administration” of tax laws. The problem, of course, is allowing the government to determine what is frivolous.

Last month a prominent CPA publication used actor Wesley Snipes as an example of somone making a frivolous tax argument. There is a big problem with that anology, however, Snipes was acquitted by a jury in Ocala, Florida on all felony tax charges against him.

It’s not just California that has jumped into the fray. The IRS also imposes monetary penalties for those they determine to take frivolous positions. In fact, they take things a few steps beyond. In addition to monetary penalties, the IRS often indicts those who make arguments they deem frivolous. If that isn’t enough they sometimes take the licenses of attorneys and accountants that present the taxpayer’s frivolous arguments.

Prominent tax freedom movement leader Joe Bannister, himself a former IRS special agent, was indicted for his “frivolous” views. After being acquitted by a California jury, the IRS and the California licensing authorities took away his accounting license and his ability to assist taxpayers with returns.

How do we know all this? Attorney Brian Mahany was part of the legal team that successfully defended Wesley Snipes on his felony tax charges. Attorney Christopher Ertl helped defend Joe Bannister.

Our system of government was built upon a foundation of checks and balances. No matter how well intended the regulators, it is a slippery slope when the regulators suddenly become judge, jury and executioner.

The line between what is frivolous and what isn’t is often blurry. The IRS thought Joe Bannister and Wesley Snipes arguments were frivolous. But a jury of their peers disagreed.

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Attorneys Brian Mahany & Christopher Ertl and their team of tax law professionals at Mahany & Ertl help people with tax problems. We built our reputation on keeping the government honest and giving taxpayers a fair chance. Criminal tax problems, business tax problems, tax evasion, non-filers, collection problems, audits, offers in compromise? We handle it all.

Call us and see if we can help you. (414)-704-6731 will connect you with one of our team of Milwaukee tax lawyers; a real lawyer, not a paralegal or secretary.

We represent people anywhere in the United States. Find out why we are both America’s and Wisconsin’s Power Tax Lawyers!