NY Settles With Ala. Firm For $40M In Biggest Tax Recovery

Law360, Washington (April 18, 2017, 2:12 PM EDT) -- New York Attorney General Eric Schneiderman on Tuesday announced a whistleblower-initiated $40 million settlement with Alabama-based investment firm Harbert Management Corp. over unpaid state income taxes claimed instead in lower-tax Alabama, calling it the “largest ever recovery of its kind” by the office.

The company chaired by CEO Raymond Harbert, a major donor at Auburn University, where the business school is named after him, allegedly earned hundreds of millions for his Alabama-based company through a New York office but declared none of the income in New York from 2004 to 2009, according to the agreement signed earlier this month.

The company...

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