As the federal government ramps up efforts to shut down illegal tax shelters and make it more difficult for banks and financial institutions to assist US taxpayers in hiding money, another bank has come under intense scrutiny. Deutsche Bank, one of Germany’s most powerful financial institutions, has been identified in an unsealed indictment as involved in tax shelters sold and marketed by a US lawyer and accountant, John B. Ohle III.
Ohle is accused of marketing close to 40 abusive tax shelters to clients of Bank One (now Chase) and Jenkens & Gilchrist. If that last law firm rings a bell, it’s because the now defunct Dallas based firm came under fire for its role in providing tax “advice” for illegal tax shelters.
Ohle, who eventually left Bank One to open his own practice, is accused of selling “Homer” tax shelters, a variation on the abusive tax shelter, Son of Boss. He is charged with multiple counts of tax evasion, conspiracy and obstruction of justice.
“Homer” stands for “hedge option monetization of economic remainder” and yes, it was reportedly named after the famously buffoonish dad on the Simpsons. With a Homer shelter, extremely wealthy clients claimed bogus tax losses and escaped nearly $103 million in taxes. For their role in the scheme, Jenkens earned $12.1 million and Bank One pocketed a cool $5.2 million.
Deutsche Bank is accused of arranging bogus trades and loans in the scheme. The indictment comes at a particularly harsh time for the bank, which is already under investigation for its work related to tax shelters. It’s also embarrassing for the German government, which has been particularly vocal in its criticisms of other country’s banking systems (particularly the Swiss).
Hi Deutsche Bank is well known for it interest rates I was wondering though if its savings accounts were insured by the FDIC?