Ponzi Scheme Theft Losses and the Repayment of Profits by Those who Prospered (The "Clawback")

Date: June 25 2020 CLE Credits: 1 General

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Live Webcast - June 25, 2020

  • 7:30-8:30am PT / 8:30-9:30am MT / 9:30-10:30am CT / 10:30-11:30am ET

Course Description

Investors in Ponzi Schemes that profit from those schemes are often called upon to return those profits after the Ponzi Scheme has collapsed, leaving certain investors who (1) have profited from the Ponzi Scheme; and (2) those who have lost money in the Ponzi Schemes. A trustee in bankruptcy is typically appointed, and the trustee can force the return of profits made by investors from the Ponzi Scheme. These are "known as a Clawback". Profitable investors may also be called upon to return both their "profits and or their principal investments" that were returned to them.

There is a unique section of the Internal Revenue Code that permits investors who are forced to make a pay back of profits, to be able to go back in time (even after the Statute of Limitations has run) and obtain refunds from closed years that may be much more valuable than a simple theft loss deduction. Often refunds from the past are more than likely to have been taxed in much higher tax brackets. These refunds of past profits often provide much higher returns than a simple current deduction.



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  • Richard S. Lehman
    With nearly 50 years as a tax lawyer in Florida, Lehman has built a tax law firm with a national reputation for being able to handle the toughest tax cases, structure the most sophisticated income tax and estate tax plans, and defend clients before the IRS. Mr. Lehman has had extensive experience with all areas of the Internal Revenue code that apply to American taxpayers and non-resident aliens and foreign corporations investing or conducting business in the United States, as well as U.S. citizens and domestic corporations investing abroad.

    Contact Richard S. Lehman
      • 1 General Credit
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    1. Explore a world where you can be a millionaire one day and broke the next. Welcome to the world of Bernie Madoff.
    2. Identify the techniques available for defrauded investors to recover funds in the form of taxes they will not have to pay for a financial theft loss.
    3. Discover the legal methods of maximizing the tax refund offered from both the United States and taxes paid to almost all of the separate states.
    4. Recognize the difference between Ponzi Schemes and other types of thefts.
    5. Learn what is the "Safe Harbor" and Ponzi Scheme tax recovery.
    6. Explore the tax code section that allows taxpayers to recover tax refunds from taxable years that are normally not available under typical circumstances.
    7. Identify the requirements of taking advantage of a little known tax code section.
    8. Discover the procedures that investors who made money in fraudulent investment schemes must face years after the investment has crashed.
    9. Recognize that there are alternative methods of recovery of taxes paid from a Clawback.
    10. Learn that the Internal Revenue Code can lead to fairness at times.

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