By Ruben Conitzer
David Parse, a former CPA and broker at Deutsche Bank, was sentenced in federal court to forty-two months in prison for tax obstruction and mail fraud. The Department of Justice (“DOJ”) said Parse assisted in the marketing of fraudulent tax shelters worth billions of dollars.
The DOJ announced Parse’s sentencing related Parse’s work in helping legal and accounting firms design, market and implement fraudulent tax shelters.
Manhattan U.S. Attorney Bharara said Parse “is now paying the price” for helping his “wealthy clients make an end-run around the IRS, depriving the treasury of billions in tax revenue.”
Parse’s fraudulent tax shelters are alleged to have included short sales, short options strategy, swaps and HOMER transactions. In addition to being sentenced to time in prison, Parse was sentenced to three years of supervised release and was ordered to pay over $115 million in restitution and to forfeit $1 million.
