Cryptocurrency itself is a string of computer-generated code. For asset protection purposes, a cryptocurrency account currently functions similarly to offshore banking prior to the IRS?s crackdown of anonymous personal foreign accounts. At the moment, creditors face obstacles of identifying potential defendants and the international nature …
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Keeping you current to Focus BetterThe Unique Quandaries Faced in Recovering International Cryptocurrency Frauds02/01/2018
To Deduct or Not Deduct: The Illinois Personal Service Income Conundrum01/17/2018
On December 11, 2017, the Illinois Department of Revenue (?Department?) issued proposed regulations that seek to clarify the scope of the deduction by setting forth specific rules and hypothetical examples. Nevertheless, even with the proposed regulations, the deduction is beset by ambiguities that will continue …
Reaching Trust Assets in the UK- It Can Be Done01/16/2018
English courts are developing ways to ensure that creditors are not thwarted by sophisticated and devious debtors using offshore structures that do not appear to be fictitious.
Illinois Decision Sheds Light on Potential Pitfalls for Intercreditor Agreements12/15/2017
Given the increasing prevalence of intercreditor agreements in commercial finance transactions, lenders and counsel should be aware of an important 2017 Illinois appellate court decision, Bowling Green Sports Center v. C.A.G. LLC, in which the court ultimately determined that in certain circumstances a senior lender?s …
Federal Courts Determine OTCs’ Service Fees not Subject to Hotel Occupancy Taxes12/05/2017
The federal courts just gift-wrapped a decision for taxpayers, right in time for the holidays. In late November, the U.S. Court of Appeals for both the Fifth and Seventh Circuits held that local hotel occupancy taxes do not apply to the service fees online travel …
Second Circuit Explains Alleging a Domestic Injury in RICO Complaint for Extraterritorial Actions11/06/2017
The Second Circuit is the first court of appeals to consider the holding in the United States Supreme Court?s decision in RJR Nabisco Inc. v. European Community, 136 S. Ct. 2090 (2016), which said that Section 1964 (c) of RICO does not apply extraterritorially for …
Scary Stuff: Illinois Sales Tax Whistleblower Update – First E-tailers and now Custom Tailors10/31/2017
You may have already seen the Bloomberg article issued on June 1, 2017 which outlines what many of us have sadly come to know as the ?Diamond? qui tam claims: the ongoing exploitation of the Illinois False Claims Act and abuse of the state and …
In the Matter of Product of Conagra Foods Ingredient Co., New Mexico Administrative Hearing Office, Dkt. No. 17-39, September 15, 201710/02/2017
The New Mexico Office of Administrative Hearings granted Conagra Foods? Motion for Summary Judgment concluding the interest earned on notes was properly characterized as non-business income.
Effectiveness of Foreign Remedies to Obtaining Internet Information and Enjoining Illegal Conduct08/04/2017
The Internet has become the common form of commerce. As such, illegal activity has migrated there. The Internet is frequently used to engage in illegal activity cloaked in anonymity. Claimants have few if any direct means of enforcing their rights and court orders against the …
Illinois Appellate Court Issues Decision on Temporary Storage Exemption08/04/2017
On June 28, 2017, the Illinois Appellate Court in Shared Imaging, LLC v. Hamer, 2017 IL App (1st) 152817, P1 (Ill. App. Ct. 1st Dist. June 28, 2017) reversed the Circuit Court?s decision and held that Shared Imaging, LLC (the ?Taxpayer?) is entitled to a …
The Cubs Won the World Series and Illinois Finally Has a Budget!07/07/2017
Today marks the first time in over two years that Illinois will be operating under a budget. This is a result after the House voted to override Governor Rauner?s veto of Senate Bill 9. The House garnered the necessary votes to end the two year …
U.S. Supreme Court Clarifies Service by Mail on Foreign Parties – International Asset Recovery05/26/2017
On May 22, 2017, in Water Splash Inc. v. Menon, The United States Supreme Court addressed the issue whether under the Hague Service Convention service by mail was prohibited. At issue was Article 10 of the Convention that provided if the country of destination does …
British Virgin Islands Widens Scope of Pre-Action, Norwich Pharmacal Orders – International Asset Recovery05/18/2017
A Norwich Pharmacal order enables an applicant to obtain discovery about a wrong that has been committed from a respondent who is not ?mixed-up? in it.
Lessons Learned from New York’s Largest Ever False Claims Act Tax Settlement05/03/2017
A little good faith can go a long way. Insight can be hard to gain from publicly announced settlements, mostly because litigation is typically settled due to the cost of defense and overall frustration with litigating. But the recently announced settlement of a False Claims …
Recent Decision in Ampal Confuses Issue Whether Bankruptcy Trustee Can Avoid Extraterritorial Transfer04/19/2017
In a ruling recently decided by the U.S. Bankruptcy Court for the Southern District of New York, Spizz v. Goldfarb Seligman & Co. (In re Ampal-Am Israel Corp.), 562 B.R. 601 (Bankr. S.D.N.Y. 2017), that court disagreed with other courts both within and outside its …
A Long Time in the Making: Illinois (Finally) Proposes Draft Regulations to Clarify the Reasonable Compensation Deduction03/16/2017
In January 2017, the Department of Revenue took steps to clarify the scope of the Reasonable Compensation Deduction by proposing draft regulations. Despite the admirable intention of the Department, the proposed regulations nevertheless only seem to shine a dim flashlight on the opaque statute.
Another Dakota Takes on Physical Presence03/10/2017
On 3/16/17, the Sixth Judicial Court of South Dakota overturned the State?s recently-enacted remote sales tax law. In striking down the economic nexus standard, the court specifically stated that it was bound to follow the United States Supreme Court?s decision in Quill Corp. v. North …
How the Supreme Court’s Interpretation of Bank Fraud is Useful in Foreign Recoveries02/16/2017
On 12/12/16, the U.S. Supreme Court held that the bank fraud statute does not require proof that the bank suffered a financial loss nor that there was intent for the bank to suffer a loss.
Think Nationally Before You Act Locally – A Strategic SALT Litigation Tip02/14/2017
It is a well-known fact that the states have become more aggressive in their SALT litigation tactics. There are a number of factors to be considered when devising a multi-state litigation strategy.
Substantial Activity Through Correspondent Bank in New York Creates Personal Jurisdiction Over Foreign Bank Defendant12/27/2016
Substantial Activity Through Correspondent Bank in New York Creates Personal Jurisdiction Over Foreign Bank Defendant
Caution For Freezing Orders Obtained Without Full Disclosure11/10/2016
A freezing order tying up a defendant?s assets is a powerful tool for claimants in English common law jurisdictions. But, they must be obtained with full and frank disclosure and come with serious ramifications when that does not occur. Typically, an applicant for freezing order …
No Ostrich Here: Qui Tam Victory for Taxpayer from the Illinois Appellate Court10/19/2016
The Illinois Appellate Court has, once again, determined that there was no "reckless disregard," by a taxpayer under the Illinois False Claims Act ("IFCA"), by failing to pay Illinois use tax on internet and catalog sales made into Illinois. The decision issued by the appellate court on October 17, 2016 in State of Illinois, ex rel, Beeler, Schad and Diamond,…
Administrative Court or Art Critic? Cook County’s Latest Attempt to Expand the Application of the Amusement Tax Ordinance10/17/2016
Recent developments with respect to the Cook County Amusement Tax should give all tax observers pause.
The Availability of “Backward Tracing” in Jersey Offers Creditors Another Remedy Offshore09/16/2016
One of the major offshore financial centers, Jersey, has been a jurisdiction of choice for those seeking to conceal their ill-gotten assets. But, developing case law offers solace for creditors to recover those illegitimately acquired assets.
Factor Presence Nexus- Be Careful What You Wish For!09/14/2016
A recent Chief Counsel?s Ruling issued by the California Franchise Tax Board illustrates the issues and potential opportunities that arise as a result of adopting a factor presence nexus standard.