Friday, May 22, 2009 2:52 PM
Why Did Abramoff Get A Tax Refund?
There's a bewildering question hanging over the intriguing report in The Washington Post on the $520,189 tax refund that imprisoned former lobbyist Jack Abramoff received this month from the IRS. Abramoff quickly used some of the money to pay bills to lawyers and accountants, to his father, and to pay other debts. See Post story here.
Why was Abramoff due such a refund in the first place? Could it be there was a miscalculation in how much he owed the government in back taxes when he pleaded guilty in January 2006 to tax evasion, fraud, and conspiracy to bribe public officials? At the time, the plea stated that he owed Uncle Sam $1.7 million.
Meanwhile, the Justice Department is upset that Abramoff used the IRS refund to pay off these debts before making restitution to the Indian tribes that he and his covert partner Michael Scanlon defrauded. (Scanlon has pleaded guilty but has not been sentenced.)
Under his sentencing, Abramoff was not supposed to start making restitution to the tribes until he is released from prison, but he was also supposed to apply the value of his tax refund towards the money he owed the tribes. This week Justice went to court seeking to prevent Abramoff from using any of what's left from his IRS refund for other purposes before he and Scanlon pay back more than $23 million they jointly owe to several casino-owning tribes that they bilked.
According to DOJ's court filing more than $400,000 of the IRS refund has been spent.
-- Peter H. Stone

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