4 convicted in NYC of helping wealthy dodge taxes

By the Associated Press | May 24, 2011 | 8:14 PM EDT

NEW YORK (AP) — Four people have been convicted in New York City of helping some of the wealthiest Americans dodge taxes through the creation of more than $7 billion in fake tax losses.

The federal jury convicted two lawyers and two accountants Tuesday. It also acquitted one accountant, ending a nearly three-month trial.

Prosecutors said three of the defendants earned more than $130 million in profits from the 10-year scheme that catered to wealthy people across the country.

Among those convicted was Paul Daugerdas (DAWG'-her-doss), a 60-year-old Wilmette, Ill., lawyer.

Prosecutors said he made $95 million through the sale of shelters. They said he then reduced his income from the shelters to less than $8,000 so he could evade taxes. Sentencing was set for Oct. 14.