A government probe of illegal tax shelters for the rich resulted in a guilty plea Thursday by a New York banker who admitted he helped cheat the government out of millions of dollars in tax revenues by promoting phony tax shelters.
Domenick Degiorgio, 42, of Cold Spring Harbor, N.Y., pleaded guilty in U.S. District Court to conspiracy, a scheme to defraud his employer and tax evasion.
In court papers, federal prosecutors portrayed Degiorgio as an avid promoter of the tax shelters at the Manhattan office of a German bank, Bayerische Hypo und Vereinsbank, where he supervised various tax shelter transactions from 1996 to 2003.
The prosecutors described a worldwide network of tax shelter promoters that included tax shelter boutiques from California that devised the transactions and then sold them to U.S. taxpayers as well as other individuals and accounting firms.
One of those accounting firms — KPMG — helped process the shelters for the German bank, according to court papers and the government.