In what I guess is the realization of the maxim that pigs get fat and hogs get slaughtered, Jenkens & Gilchrist will shut its doors after being ordered to pay $76 million in federal penalties for its alleged role in creating illegal tax shelters.
The U.S. Attorney involved in the case said that the firm “has recognized ... that its tax-shelter practice has caused serious damage to its reputation, revenues and stability, and that as a result it ultimately cannot continue in business.”
The 56 year old and well known Texas Big Law firm is estimated to have sold iffy tax shelters to 1,400, each of which now owe substantial back taxes, interest and penalties. Jenkens & Gilchrist has been involved in numerous law suits from these clients.
The hit to its credibility must have been enormous, and it appears that the firm has been deflating for some time. The law firm, which once number 611 attorneys, now only lists 163 attorneys.
Jenkens & Gilchrist slogan was "It is not about us. It is about you." I guess, ultimately, its clients did not believe this.
We had a professor who used to say, 'there are pigs and there are hogs. You don't want to be a hog.' Ironically, she was a tax professor. I guess this hog mentality is what keeps the IRS going.
Posted by: Susan Cartier Liebel | March 30, 2007 at 06:39 AM
RIP J&G... Loved the view from 5 Houston Center.
Posted by: Jamie Parks | April 03, 2007 at 04:51 PM