Attorney-at-Law

THE WOMAN IN THE CASE – PART DEUX

In Uncategorized on 05/05/2022 at 18:51

Karla Podlucky co-stars in T. C. Memo. 2022-45, filed 4/5/22, as Judge Albert G. (“Scholar Al”) Lauber tells the tale of spouse Greg’s sluggery, thuggery, and skullduggery, whereby he fleeced a couple hedgefundies and a bunch lenders (hi, Judge Holmes) of around $600 million.

Besides their dream house and his model trains (see my blogpost thus entitled), Grteg festooned Karla with custom-made baubles and pretties from Van Cleef & Arpels, the outfit that gets Peter Shemonsky and Kevin Zavian dewy-eyed on Antiques Roadshow.

Greg spent better than $1.2 million on model trains, but alas, he was a Lionel fancier. I’m an American Flyer and Märklin man, but can only dream of having that much to spend.

After detailing Greg’s looting of LNI, the outfit he created and whose shares he sold and whose credit he used to borrow, Judge Scholar Al comes to Karla.

“Although Greg directed the scheme, causing LNI to make constructive distributions of property, Karla played a crucial role. Karla had signature authority over the bank accounts of 2MC, a shell company that Greg deployed to carry out his fraud. One step in the arrangement involved Greg’s wiring money from LNI to 2MC. Karla would then draw money from 2MC’s accounts to purchase jewelry and to pay for services related to the [MacMansion].

“During 2003–2006 Karla signed at least 100 checks on behalf of 2MC. The amounts ranged from $60 to $500,000, and the checks were made out to her, Greg, Traditional Jewelers, Blackstone Fine Jewelers, Fine Gems International, and VCA, as well as architects and contractors involved in the [MacMansion] construction. Karla signed at least $6,628,139 in checks during these years. These payments far exceeded the total income that petitioners reported on their joint returns for 2003–2006, which was between between $350,000 and $600,000 annually.” T. C. Memo. 2022-45, at pp. 23-24.

There’s more.

“While Karla may not have acted with fraudulent intent, the evidence shows that the ill-gotten gains were attributable to her, at least in part. She signed more than 100 checks on behalf of 2MC. These checks, made out to jewelry vendors, architects, and contractors, totaled more than $6 million and benefited her personally. We conclude that Karla has failed to establish that any portion of the understatements is not attributable to her.” T. C. Memo. 2022-45, at p. 24.

No innocent spousery for Karla.

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