Investor Hits Proskauer With Suit Over Tax Shelter

Law360, New York (September 3, 2009, 7:11 PM EDT) -- An investor and two trading firms have accused Proskauer Rose LLP of malpractice, fraud, conspiracy and other claims for allegedly promoting a tax shelter the firm knew was questionable.

George M. Fleming, of Houston, along with Texas-based GMF Trading LLC and Nevada-based Pelican Trading Inc., filed suit Sept. 2 in the U.S. District Court for the District of Nevada, saying Proskauer had pushed a personal investment corporation, or PICO, deal offered by accounting firm Ernst & Young.

A federal jury in New York convicted four E&Y...
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