Jenkens & Gilchrist

Last updated
Jenkens & Gilchrist
Jenkens-logo.JPG
Headquarters Flag of the United States.svg Dallas, TX
No. of offices?
No. of attorneys600+
Major practice areasGeneral practice
Revenue
Date founded1951 (Dallas, TX)
Company type DEFUNCT

Jenkens & Gilchrist, P.C. was a Dallas-based law firm, founded in 1951 as Jenkens & Bowens to service the various businesses controlled by Clint Murchison Jr. The Dallas Morning News was an early client. As a result of the extent of Murchison family holdings, the firm soon developed expertise in corporate transactions.

In the 1980s, the firm faced liability and financial difficulties resulting from involvement in the Savings and Loan Crisis. Jenkens settled a number of malpractice lawsuits in 1987 for $18 million. In the 1990s, Jenkens saw intense growth and added offices outside Texas for the first time to expand from a regional into a national law firm.

Opening a Chicago office with a tax attorney team from Altheimer & Gray in 1998 would become the most fateful act for the firm. [1] In 2000, the firm merged with Parker Chapin Flattau & Klimpl to launch in New York City. By 2001, the firm employed more than 600 attorneys, reaching its peak in size. In 2004, the firm advised Fossil, Inc. in its $173 million secondary securities offering managed jointly by J.P. Morgan, Jefferies & Company, and CIBC World Markets.

Firm's demise

In the 1990s, the Chicago office began a lucrative practice of offering tax shelter advice to a variety of wealthy corporate and individual clients, primarily by drafting opinion letters stating that certain tax schemes were compliant with the Internal Revenue Code. The Chicago tax group earned $267 million from 1998 to 2003. The group worked in coordination with tax advisers at Ernst & Young.

The Internal Revenue Service (IRS) began investigating Ernst & Young and several taxpayers in 2002. Eventually, it audited many Jenkens clients, who subsequently filed malpractice suits against the firm. In 2003, the IRS itself sued Jenkens & Gilchrist. Facing a substantial potential liability, the firm began to unravel. [2]

As negotiations about settling with the government and other plaintiffs dragged on, partners with portable business began to depart. In 2005, the 90-attorney New York City office from legacy Parker Chapin defected to Troutman Sanders. In 2007, the Los Angeles office decamped to Baker & Hostetler. The remaining partners in the Chicago office switched to Nixon Peabody. Some 100 attorneys in Dallas, Austin and Houston found a new home at Hunton & Williams. The majority of the San Antonio office moved to Texas firm Jackson Walker, LP while Partner Phillip D. Freeman and Associate Nicole Betters, along with many from the Austin office, moved to Winstead. [3]

Finally, the firm agreed to settle its liabilities with the IRS, pay a $76 million fine, and to cease practicing law effective March 31, 2007. [4]

On May 24, 2011, four lawyers with the firm were found guilty of tax evasion, conspiracy, and related charges stemming from a ten-year tax shelter scheme that prosecutors said generated more than $1 billion in fictive losses. [5] As of 2012, the defendants were seeking a new trial after learning one of the jurors lied about her background in order to be selected. [6]

Related Research Articles

Arthur Andersen LLP was an American holding company based in Chicago. Formerly one of the "Big Five" accounting firms, the company had provided auditing, tax and consulting services to large corporations. By 2001, it had become one of the world's largest multinational corporations.

PricewaterhouseCoopers Multinational professional services network

PricewaterhouseCoopers is a multinational professional services network of firms, operating as partnerships under the PwC brand. PwC ranks as the second-largest professional services network in the world and is considered one of the Big Four accounting firms, along with Deloitte, EY and KPMG.

Limited liability partnership Partnership in which some or all partners (depending on the jurisdiction) have limited liabilities

A limited liability partnership (LLP) is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from the traditional partnership under the UK Partnership Act 1890, in which each partner has joint liability. In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a corporation. Unlike corporate shareholders, the partners have the power to manage the business directly. In contrast, corporate shareholders must elect a board of directors under the laws of various state charters. The board organizes itself and hires corporate officers who then have as "corporate" individuals the legal responsibility to manage the corporation in the corporation's best interest. An LLP also contains a different level of tax liability from that of a corporation.

Baker McKenzie Multinational law firm

Baker McKenzie is a multinational law firm headquartered in Chicago, Illinois. Founded in 1949 as Baker & McKenzie, it has 77 offices in 46 countries, and over 6,000 lawyers worldwide. It is one of the largest law firms in the world by headcount and revenue.

Vinson & Elkins LLP is an international law firm with approximately 700 lawyers worldwide headquartered in Downtown Houston, Texas.

Grant Thornton LLP is the American member firm of Grant Thornton International, the seventh largest accounting network in the world by combined fee income. Grant Thornton LLP is the sixth largest U.S. accounting and advisory organization. The firm operates 59 offices across the US with approximately 8,500 employees, 550 partners, and produces annual revenue in excess of US$1.9 billion.

A boutique law firm is a collection of attorneys typically organized in a limited liability partnership or professional corporation specializing in a niche area of law practice. Although a general practice law firm includes a variety of unrelated practice areas within a single firm, a boutique firm specializes in one or a select few practice areas. There may be some confusion as legal publications may refer to any small- or mid-sized firm as a boutique, though generally firms with fewer than 100 attorneys would count. Boutique should apply to those firms that focus on particular areas, regardless of size, though they are typically smaller, with exception to a few firms such as Finnegan, Henderson, Farabow, Garrett & Dunner or Fish & Richardson with over 400 attorneys.

Quinn Emanuel Urquhart & Sullivan, LLP is a global white shoe law firm headquartered in Los Angeles, California. The firm employs approximately 800 attorneys throughout 23 offices around the world.

The KPMG tax shelter fraud scandal involves allegedly illegal U.S. tax shelters by KPMG that were exposed beginning in 2003. In early 2005, the United States member firm of KPMG International, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters.

Howrey

Howrey LLP was a global law firm that practiced antitrust, global litigation and intellectual property law. At its peak Howrey had more than 700 attorneys in 17 locations worldwide.

Troutman Sanders

Troutman Sanders LLP was an American law firm founded in 1897. The firm had about 650 attorneys before merging with the Philadelphia-based Pepper Hamilton in July 2020 to become Troutman Pepper Hamilton Sanders LLP d/b/a Troutman Pepper. Troutman Sanders was organized into 17 areas of legal practice within five departments: Corporate, Real Estate & Finance, Business Litigation, Specialized Litigation, and Energy and Regulatory. Stephen E. Lewis was the firm's managing partner and became chair of Troutman Pepper after the merger in 2020. Carl E. Sanders, the former Governor of Georgia, served as chairman emeritus until his death in 2014.

Parker Chapin Flattau & Klimpl was a New York City-based law firm that practiced from 1934 to 2001, when it merged with Dallas-based Jenkens & Gilchrist. It was a prominent mid-sized New York firm, often called a corporate and securities boutique because of its highly regarded middle market securities practice which also embraced securities litigation and arbitration. Its securities clients, according to electronic filings with the Securities and Exchange Commission, included Sbarro, Sotheby's and Logitech.

Keck, Mahin & Cate was a law firm based in Chicago, Illinois that was founded in 1886 and stopped operations in 1997.

Winstead PC

Winstead PC is a national corporate law firm with offices in Texas, New York and North Carolina. The firm's more than 300 attorneys and consultants serve as legal advisors to mid-market and large businesses, providing legal services to industries including airlines, financial services, healthcare, higher education, investment management/private funds, life sciences, real estate and sports business & media. Winstead's attorneys and practices have been recognized by Chambers USA, Chambers and Partners, 2021; Super Lawyers, Thomson Reuters, 2021; and The Best Lawyers in America, Woodward/White, Inc., 2021.

Son of BOSS is a type of tax shelter used in the United States, one that was designed and promoted by tax advisors in the 1990s to reduce federal income tax obligations on capital gains from the sale of a business or other appreciated asset. Its informal name comes from the name of an earlier tax shelter, BOSS, which it somewhat resembles. There were at least 7 legal cases still under way at the end of 2016.

Crowe & Dunlevy is an American law firm headquartered in Oklahoma. Founded in 1902, it is the second largest law firm in Oklahoma with offices in Oklahoma City, Tulsa and Dallas, and is Oklahoma's second oldest law firm. According to the annual Law360 400 Report, a ranking of the 400 largest U.S. law firms by number of lawyers, in 2021 Crowe & Dunlevy was listed as the 351st largest law firm in the country. In 2019, Forbes Media named Crowe & Dunlevy to its inaugural list of America's Top Law Firms, the only Oklahoma City-based firm named to the list.

Ryan LLC

Ryan LLC, based in Dallas, Texas, is a tax services and consulting firm. Ryan LLC has more than 16,000 clients in over 50 countries. The company has over 74 locations, including locations in Canada, the Netherlands, the United Kingdom, India, Hungary, and Australia. Ryan LLC works with companies including 7-Eleven, the Kroger Company, Walmart Stores, and Johnson & Johnson.

Reid Collins & Tsai LLP is an American law firm established in 2009 with offices in New York City, Austin, Dallas, Washington, D.C., and Wilmington, Delaware. The firm represents plaintiffs in complex civil litigation on a mixed-fee or contingency-fee basis.

Visitdallas

VisitDallas, formerly known as the Dallas Convention & Visitors Bureau, is a 501(c)(6) contracted by the City of Dallas to market Dallas as a convention and tourist destination. In January 2019, the Government of Dallas released an audit uncovering evidence of misuse of taxpayer funds, mismanagement, and excessive executive compensation. In November 2019, IRS Form 13909 was filed against VisitDallas calling for a public investigation by the Internal Revenue Service and Texas Attorney General.

References

  1. Lynnley Browning, "Inquiry into Tax Shelters Widens Beyond Audit Firms," New York Times, February 4, 2006.
  2. Katie Fairbank and Terry Maxon, "How Jenkens & Gilchrist Lost Its Way," Dallas Morning News, April 1, 2007.
  3. "24 Winstead Attorneys Listed Among Texas Rising Stars | the Metropolitan Corporate Counsel".
  4. Koppel, Paul Davies, David Reilly and Nathan (2007-03-30). "Law Firm's Work On Tax Shelters Leads to Demise". Wall Street Journal. ISSN   0099-9660 . Retrieved 2020-09-02.
  5. Patricia Hurtado and Chris Dolmetsch, "Chicago Lawyer Daugerdas Found Guilty in Tax Shelter Trial", Bloomberg, May 24, 2011.
  6. Bob Van Voris, "Ex-Juror Arrested, Forced to Testify in Bid for New Tax Shelter Case Trial", Bloomberg, February 15, 2012.