Judge sentences ex-Greenberg Traurig tax lawyer to prison

By Mike Scarcella

Feb 14 (Reuters) - A tax lawyer who was charged with helping wealthy clients conceal tens of millions of dollars from the IRS was sentenced on Thursday to 30 months in federal prison.

Frank Butselaar, a onetime partner at law firm Greenberg Traurig, led what U.S. prosecutors in Manhattan called "a long running, international fraud scheme" that benefited clients including electronic dance music jockeys and fashion models.

Prosecutors had urged U.S. District Judge Cathy Seibel to order three years in prison. Butselaar has already served 21 months in custody, and so the prison term will add a few months of additional incarceration.

In a statement, Butselaar’s defense lawyers Kerry Lawrence and Samidh Guha said “our goal remains to get Mr. Butselaar home to his loved ones as soon as possible" and that the sentencing hearing was "a step in that direction."

A spokesperson for the U.S. attorney’s office declined to comment about the sentence.

Greenberg Traurig, which was not a defendant, in a statement said it would not comment on the sentencing because the alleged misconduct occurred more than a year after he left the firm. Court records show Butselaar worked in Greenberg Traurig’s office in Amsterdam from the mid-2000s until late 2013.

Prosecutors charged Butselaar in 2022 with tax-related crimes, including advising famous clients on how to conceal offshore income from the IRS.

Butselaar pleaded guilty in November, after his trial had started, to one count of aiding or assisting in the filing of a false or fraudulent tax return.

“Butselaar knew that he was breaking the law,” prosecutors told the judge in a court filing before the sentencing. “But he did it anyway to boost his professional standing and build a client base in industries that are driven by word-of-mouth recommendations.”

Butselaar’s attorneys told the judge in arguing for leniency that he had "suffered disproportionate punishment relative to others" involved in the alleged misconduct.

“Mr. Butselaar's reputation has suffered irreparable damage,” they said in a court filing. “When he ultimately returns to the Netherlands, it will be to a daunting and uncertain future.”

Seibel has not yet ruled on the government's request for Butselaar to pay $19.25 million in restitution. His defense lawyers contend he does not owe money to the IRS.

The case is United States v. Butselaar, U.S. District Court, Southern District of New York, No. 7:22-cr-00560-CS.

For U.S.: Benjamin Klein, Shiva Logarajah and David Markewitz of the U.S. attorney's office

For Butselaar: Kerry Lawrence of Law Office of Kerry Lawrence; Samidh Guha of Guha PLLC; and Diane Fischer of Law Office of Diane Fischer