◆ SpookStack

“syvee ; at “ne; “th Korsh ;fecente 18 i nan cia fz in lieu of.ca » Jeral..-unit n “if the options wees Force 18 wa8 set-up under Rob. |i Kennedy ised -after the stock had -{ert:Campell,.then a h eaisen sin “price, Mr, orshak “law: “spetialis e ‘would realize a long. 1 ENOOt «| tal: galin, Such gains ‘are taxer much Jower.rates than ‘nore. “= feet mal ‘income -for those i high “{nes re * of ats Key: Taet ; _ | tax brackets, * ., . was Las Vegas. A specia. LR.S.| |” “wac-invecti. j. Stock options are a Jegal and ° study. of the “hidden “owner- inedy was counsel teering. estl- “e hy Study “en Treported, Dut Geter fete a ne Tere ES St Hee ied. Sie a tia : : ; p u overnment! jth Ge ee . ; A “and aid: countered a number Of ob- Isources said the agents found {This study, Mr, Campbell and Kenembered, “and said Robert --4sources with i sth to knowt jat least one case in 1967 in. {other sources ‘seid, ded -the He ead. “Don't Be an thine “Tedge of th is Ma ‘ Fone volving & $65,000 pain that al- {Internal Revenue Service “to! jHe d calleme when pe ipo vee 1B, \difficultics vere att ne tbr the Negediy svas not fully reported... conclude in 1971 and 1972 that) | an a me nen he deaves.’”| Mr Korshak's ox attributa ote The IRS. agents recom. |Mr. Korshak was one of the; !The associat e said he P vas _ living shak’s expensive way o {mended:that a criminal grand -jthree ;-behind-the-scenes direc. | fough an Per nepoperative’ a "THe lived raciously and ty jury ‘be convened by the Jus- jtors of organized crime’s -In-} |with Mr.°Kenn yer l straig - eled extent hy ithe h rav-| Trice Department to investigate jvestments in Las Vegas. — | ned him out rea ast.”. OB roy en, FOMeS: {both the alleged unreported in- | Federal - officials said ‘that|! When the interview . was come and the nature of Mr. {Federal laws ‘forbid investing ‘described to him, the Associate { 'Korshak’s legal work. Accord. {money that is illegitimately,ob- “ead, ‘Mr. “Korshak “was ‘over= - . oe jing to Government sources the {tained in legitimate businesses. the patther Or ere ation was agents specifically proposed {In addition, the officials said, it income and hic tan peersnak’s that many of his corporate {is a violation of income tax From 1963 to 1969" hoe nts. clients be subpoenaed to be jaws to report in-ome falsely. ample, he reported a ton bie Guestioned about the services | Nonetheless, Strike Force 18 ~ dincome of $4 P million nia id he performed. Was unable to produce suffi- taxes of $39 million, and pat Such a grand jury request isc’ +t direct evidence to begin a His inceme was so lar. e that unusual in an intome tax case, grand Jury proceeding ‘against the agents found it im ossible! some Justicey | Department M: Korshak. seein a, to determine whether Mr Kor, sources acknowledged, but the “It's very difficult for al ‘been the Senate’s Permanent sshak was living beyon bi-, aBents believed that a Criminal prosecutor to do that kind of [Subcommitice on Investiga- means-—one of ike basic ing:-{ £282 82ainst Mr. Korshak would) work"”—work in organized! ‘tions, which held hearings into jcators of income tex cvasion. idevelop it seme Of his clients: crime—Mr. Camptell explained,! :stolen securities and organized In addition, the complexity of; :Wete compeiled to describe his: “wi a he doesn’t have wit-| icrime in the early 1970's and Mr. Korshak’s return eas such| qork. Officials in the revenue’ ‘nesses, Trying to turn allega-} tis now considering a detailed that the agents coult vas puck ervice ad the F.B.L believed ons into proof is very a inquiry into the Teamsters But since those Congressional! jinvestig.cions of the 1950's, Organized crime has been al- lowed to flourish amid apathy. Neither the public nor Congress has generally concerned itself ith organized crime or white- collar crime. One exception has whether his "re ; ;that the corporat’ :ns were act- ficult.” 4 tunion. ; . Ported income ‘ing i coltysion cwith Mathie! ' Tn its own inquiry into Mr. In recent years, the Securi-: : } ‘8: +: ’ Korshak's affairs, Th> Times] ‘ties and Exchang: Conunission included money from illegal more shan a form of labor found evidence that . the few! jhas become more involved in| .. sources, aH. . peace. ' Officials ad that occasions -vhen the Govern. policing underworld acti-ity in { The silence of his clients also such col ‘Reda Mab ae ment did have potential wit-| [public corporations, in some- tadded to the Government's lation of eer a] tador ment . Hesses against him, Mr. Kor-| 'cases because the Justice De l The grand jury recommenda- chek intervened. In at Jeast| jpartment has been. unable to > problems. - ‘tion was approved by LRS. . : : LR.S. agents approached 4 varded to :tWO cases, associates of Mr.{ jobtain enough evidence for The i.R.S. agents app headquarters and forwarded to ‘Korshak said that he had| ‘criminal indictments, ~ “as many as 50 of Mr. Korshak’s yp, : divisi ! stice tM . corporate clients, sources close Depa nee ee the Justice idirected them not to be forth-| | - Consent decrees and other to the case said, in an effort viewed the case as marginal, {Coming with Government in-| jeivil proceedings have effective. to determine just what services however. one that would tie up. jly stopped many frauds—the - be had performed in return for jhousands of man-hours with- Parvin-Dohrmann ‘stock fraud . his retainers, which sometimes out any assurance of indict. syFeached = $50,000 a year. . ment of conviction, The request : With few exceptions, the cor- was rejected. “. \porations refused to discuss the | After the veto of criminal ~” |nature of Mr. Korshak’s work proceedings, the revenue serv- + “jother than ‘to say that he had lice decided to press for a civil :cvbeen paid for ‘professional Qo en a services.” The agents‘found the |" Ac a result of the civil case, : rvasive resistance to. their Ine. xXorshak. was formally acd. had: first-hand_eyide, inquiries unusual and suspici- Teused in 1972 of fraud and the) {Korshak's ‘tole’ in -payin - jous,-Government sources ot a Da of taxes by more] #unlon leaders in the 1940’ | ‘A long-time friend and busi- ness associate disclosed in .an| .. {interview - that. he - had. been]. durged by Mr. Korshak: not to} Joooperate .a his testimony. -be-} < yore a 1957 Federal grand jury vestigating labor racketeering "|, One Justice Department offi- ithan §924,000,-including near-| * Jelal asserted that Mr, Korshak’s |) "$950,000 in penalties, ‘The| a bills, “which were “mailed wom caSe was .settled two = Years od hhis “Chicago law: 1S later, on the-eve-oFe Tax Court - treated by his.clisats.as if they|triai’ for $179,244, roughly 20| ~dwere “duese cents -on the dollar. -All fraud ee charges were dropped. ae