More Auffenberg indictment news

"Auffenberg indicted on tax charges
He denies Virgin Islands investment was mere tax shelter
BY MIKE FITZGERALD
News-Democrat

Prominent St. Clair County car dealer Jamie Auffenberg and three promoters of a $300 million tax shelter in the U.S. Virgin Islands were indicted by a federal grand jury on tax evasion and wire fraud charges.

According to the 21-count indictment, returned by a federal grand jury in East St. Louis, Auffenberg illegally evaded more than $8.5 million in income taxes by becoming a partner in a tax shelter called Kapok Management, L.P.

Auffenberg, 55, of Swansea, is the owner of the St. Clair Auto Mall in O'Fallon and car dealerships in Belleville. He was unavailable for comment Monday. His attorney, Jeff Demerath of St. Louis, said Auffenberg will plead innocent to the charges at an April 9 arraignment before a federal magistrate judge in East St. Louis."

More here. PDF file of the indictment.

It will be interesting to see if this goes all the way to a trial. It was pretty much common knowledge that people were abusing the EDC program - to claim that your accountants and lawyers said it was okay doesn't seem to be much of a defense.