Josephberg Sentencing

Back in April, I wrote about the indictment of former Goldman Sachs investment banker Richard Josephberg for tax evasion in connection with transactions through his own firm, J.R. Cralin & Co.  See this post.   He was convicted on all 17 counts, including failing to file returns and health care fraud.  Today, the U.S. District Attorney's Office for the Southern District of New York announced that Josephberg has been sentenced to 50 months in prison for his participation in tax shelters in which Josephberg participated and which were promoted to investors through Cralin.  See this press release announcing the sentencing: Download josephberg22_sentence.pdf

Looking at the release (and the earlier materials covered in the earlier posting), it is hard to imagine that Josephberg had any goal other than ripping off the country for every penny he could get away with.  He engaged in various activities, from failing to file returns to claiming bankruptcy and setting up nominee accounts in children's names.  He even fell into the nanny trap--paying his youngest child's nanny in cash and failing to satisfy tax requirements.  When all was said and done, Josephberg's original $1.5 million tax liability for 1977-1985 mushroomed to $17 million in taxes, interest and penalties.    The 50-month sentence is his just deserts.