NYC lawyer pleads guilty to tax charge
Recent Cases
A lawyer has pleaded guilty to not paying taxes on nearly $11 million in income while working at a major Wall Street law firm.
John O'Brien entered the plea Thursday in federal court in Manhattan.
The government had accused the 48-year-old O'Brien of failing to pay $2.5 million taxes on $10.8 million in income from 2001 to 2008. They say during that time, he splurged on a weekend home, international travel and a rare book business.
Prosecutors say O'Brien has agreed to pay $2.8 million in back taxes and interest. At his Nov. 16 sentencing, he faces a maximum of four years in prison, though the term will probably be shorter under sentencing guidelines.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.