A real estate developer was convicted for promoting $1.3 billion in fraudulent tax deductions after a judge removed a deliberating juror who told the judge she was “standing up for White people.”
Jack Fisher was found guilty Friday in Atlanta federal court of selling tax deductions to wealthy individuals using so-called syndicated conservation easements, which offer tax breaks for the promise to avoid developing land. Prosecutors said Fisher relied on exaggerated appraisals and backdated documents in the scheme, which earned him tens of millions of dollars.
Jurors also convicted a lawyer who worked with Fisher, James Sinnott. Attorneys for Fisher and Sinnott didn’t immediately respond to a request for comment.
The nine-week trial nearly came undone by conflicts over race and class within the jury, which began deliberating on Sept. 14. Last week, jurors told US District Judge Timothy Batten they were “hopelessly hung.” Jurors also complained that Juror 26, a White woman, refused to deliberate.
The woman told other jurors that Juror 44, a Black man, had said Fisher and his co-defendants should be convicted because they were “rich, White and entitled.” Batten interviewed Juror 26 in his chambers, where she told him that she was “a White person standing up for White people.”
Though he initially rejected government’s request to remove both Juror 26 and 44, Batten had a change of heart. On Wednesday, he removed Juror 26, saying he concluded she had lied about Juror 44. The judge said he was concerned that he was being “perceived as standing up for and condoning racist behavior.” Juror 26 was replaced by an alternate.
Read more: Juror Who Made Race Comments Removed From $1.3 Billion Tax Case
Jurors convicted Fisher and Sinnott of conspiracy to defraud the US, conspiracy to commit wire fraud, aiding and assisting in filing false tax returns and subscribing to false tax returns. Fisher was also convicted of money laundering.
The jury acquitted an appraiser who testified in his own defense, Clay Weibel.
“We are incredibly pleased that the federal jury saw that Mr. Weibel did not intend to defraud the United States government,” said his attorney Guinevere Moore.
Lawyers for Fisher and Sinnott had moved for a mistrial over the judge’s handling of the jury controversy. Batten denied their request, but the defendants vowed to appeal if they were convicted.
Six people who worked in the Fisher network have also pleaded guilty, and four testified against him at trial. The convictions of Fisher and Sinnott may mean that prosecutors will charge other promoters who offered charitable tax deductions to wealthy Americans.
This article was provided by Bloomberg News.