LAWFUEL – The Legal Newswire – MICHAEL J. GARCIA, the United States …

LAWFUEL – The Legal Newswire – MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced that BURT KOZLOFF pleaded guilty to income tax evasion late yesterday in White Plains federal court. KOZLOFF was an investment advisor to the defunct Bayou hedge funds.

According to Court records and his guilty plea, between 1997
and 2000 KOZLOFF was employed by Select Advisors LLC (“Select
Advisors”), an investment advisory firm specializing in developing and
promoting hedge funds. KOZLOFF admitted that he failed to timely file
federal income tax returns for the years 1997, 1999 and 2000 despite
receiving in excess of $3.5 million in income from Select Advisors in
those years. KOZLOFF further admitted that he caused his accountant
to submit false information to the IRS, including requests for
extensions of time to file his tax returns, which claimed that he had
made payments to the IRS totaling approximately $329,000, when in fact
he had made no such payments.

As a result of his guilty plea before U.S. Magistrate Judge
GEORGE A. YANTHIS, KOZLOFF, 59, of Manhattan, faces a maximum sentence
of five years in prison and a maximum fine of $250,000 or twice the
gross gain or loss resulting from his offense, as well as imposition
of the costs of prosecution. Sentencing is scheduled for October 1,
2007, at 9:00 a.m. before U.S. District Judge CHARLES L. BRIEANT.
Mr. GARCIA praised the extensive investigative efforts of
the IRS in this case.

Assistant United States Attorney PERRY A. CARBONE is in
charge of the prosecution.
07-166 ###

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