Two lawyers had their licenses suspended last week for a failure to pay taxes. The two had been under investigation since last year.
The lawyers, John J.P. Howley, the former head of pro bono at Kaye Scholer, and Ronald A. Goldman, a partner at Manning Raab Dealy & Sturm, had previously pleaded guilty to the charges of failing to file tax returns. Howley had been under investigation since last year; he was eventually forced to step down as Trustee of his alma mater, Skidmore College. In addition to fines, the two faced disciplinary consequences.
Howley was initially to be suspended six months for failing to file or pay personal income taxes for more than 10 years in New York (where Howley worked), New Jersey (where Howley lived), or the Internal Revenue Service (IRS). Yes, 10 years. Howley’s eventual payment agreement with the IRS worked out to $2.4 million in back taxes but he did not comply with the agreement.
Goldman faced suspension for 7 months for failing to file with New York or the IRS. He failed to pay taxes while gambling; his tax bill was considerably lower than Howley’s. He owed about $346,000 to the feds and the state.
However, the suspensions of both were eventually lengthened to a year in an appellate decision. Howley’s lavish lifestyle was cited in the decision, including the fact that he owned a vacation home in Florida and a number of luxury cars. In addition, he lied to his wife about his finances and failed to notify his law firm about the investigation. The investigation eventually led to his resignation from the Skidmore College Board of Trustees; he had been slated to become the next Chairman of the Board.
Goldman did not maintain a similar lifestyle, but the panel noted his failure to comply with a court order to establish a payment plan for about a year. You can read the Goldman decision here.
Of course, both lawyers claimed that the punishment was too harsh. They wanted a public slap on the wrist. They didn’t get it.
