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Joseph Rillotta Quoted on Use of Directive 128 in Indictment Connected to Panama Papers in Tax Notes

"Panama Papers Wire Fraud Charges Seen as Aggressive"

Tax Notes

Joseph Rillotta discussed federal prosecutors' decision to employ a rarely used Department of Justice (DOJ) Tax Division directive in the first U.S. indictment connected to the Panama Papers leak. Tax Division Directive 128 "addresses the circumstances under which the Tax Division will approve mail or wire fraud charges within cases within its review authority – in cases arising under the internal revenue laws." Rillotta noted the Southern District of New York prosecutors' aggressive presentation of a charge under Directive 128, predicting that the indictment will provide many issues for both the defense attorneys and the court to scrutinize. "There is an upside from the government's perspective, and there is a bit of a challenge."