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2nd Circuit: Man gets new trial in major tax fraud case because suspended lawyer lied to get on jury

A federal judge erred when he refused to grant a new trial to a man convicted along with two attorneys in a major tax fraud case in 2011, a federal appeals court has ruled.

U.S. District Judge Willliam Pauley OK’d new trials for former Jenkens & Gilchrist partners Paul Daugerdas and Donna Guerin because a suspended lawyer admittedly lied to get on the jury in the case. However, Pauley nixed a new trial for broker David Parse, finding that his defense lawyers knew about the lies before the trial concluded but did nothing.

The New York-based 2nd U.S. Circuit Court of Appeals on Monday reversed (PDF) that decision: The record did not support a conclusion that lawyers for the former investment bank broker knew about what Pauley described as “breathtaking lies” by juror Catherine Conrad, a three-judge panel found.

Further, even if defense counsel had known, one judge said, a new trial should have been granted to Parse, who was convicted of mail fraud and obstruction of tax laws.

“I am not aware of a case involving more egregious juror misconduct than that found here,” Judge Chester Straub wrote in a concurring opinion. “We have never upheld a verdict rendered under these circumstances, and to do so would be to make a farce of our system of justice.”

The Associated Press, the New York Law Journal (sub. req.) and Reuters have stories.

Related coverage:

Reuters: “In tax fraud case, sins of defense lawyers are visited on client”

See also:

ABAJournal.com: “Former BigLaw partner gets 15 years in $8B tax-shelter case”