Tax prosecutions plunge as Trump shifts efforts

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By Sara Merken

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Federal tax prosecutions fell to their lowest level in decades this year, declining more than 27% from the year before as the Trump administration cut the ranks of attorneys and agents who pursue those cases, a Reuters examination has found.

President Trump's administration has carried out a sweeping overhaul of U.S. law enforcement this year, forcing out scores of attorneys and focusing large sections of the DOJ on tracking down immigrants. Its retreat from tax enforcement illustrates the toll that shift has taken on other crime-fighting efforts.

The government estimates that it collects almost $700 billion less in taxes than it is owed each year. Criminal prosecutions seek to recoup only a small fraction of that amount, but the threat of prison or large fines is meant to be one of the government's key tools for deterring cheating. Experts including former IRS and DOJ officials worry blunting the tool could embolden more cheating.

Read the exclusive story here from Brad Heath and Sarah N. Lynch.

When plaintiffs' lawyers threatened to bring thousands of cases against Discovery Communications over alleged consumer data privacy violations, all parties agreed the disputes belonged in arbitration. That's where the consensus ends. Nearly three years later, the litigation has stalled over which arbitration provider – JAMS or National Arbitration and Mediation – should hear the claims. Jenna Greene has more in On the Case.

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In New York: Eversheds Sutherland hired former federal prosecutor Negar Tekeei as global co-lead of its corporate crime and investigations practice … Paul Weiss added corporate partners Kelann Brook Stirling from Kirkland and Jamie Franklin from White & Case … Jason Sloan, former assistant general counsel at the U.S. Copyright Office, moved to Pryor Cashman. 

In D.C.: Christopher Jaarda, who was senior policy advisor and counsel to House Speaker Mike Johnson, joined Holland & Knight … Kirkland brought on investment funds partner James Hahn from Simpson Thacher … Akerman added energy and infrastructure partner Jonathan Wright from Steptoe and hired former DOJ trial lawyer Christopher Pinto for its healthcare practice … Willkie picked up litigation partner Nathaniel Ward from Jones Day.

In Los Angeles: Boies Schiller tapped Douglas Miller from the SEC's Los Angeles regional office … Morgan Lewis brought back workplace health and safety partner Jason Mills from Sidley.

In Boston: Cooley added a 30-person patent counseling and prosecution team from Dechert, including partners Andrea L.C. Reid, Andrew Wilkins and John Rearick … Holland & Knight tapped private wealth partner Dara Lynn Freytag from Shipman & Goodwin … Jackson Lewis hired former federal prosecutor Aaron Gingrande.

In San Francisco: Former DOJ antitrust leader Manish Kumar joined Freshfields … WilmerHale hired fund formation partner Javad Mostofizadeh from Latham.

Across other cities: Eversheds Sutherland hired tech M&A and investments partner Simon Arlington from Morrison Foerster in London … Holland & Knight added former Texas A&M University System general counsel Ray Bonilla in Austin … Latham picked up M&A and private equity partner Christopher Heasley from Kirkland in Houston … Kirkland hired Philadelphia-based partner Meghan Kelly and Los Angeles-based partner Bill Oxley, who co-led Orrick's complex litigation and dispute resolution practice … Jackson Lewis added former federal prosecutor Victoria Boesch in Sacramento … Goldberg Kohn brought on tax lawyer Kelly Glynn in Chicago from Nixon Peabody … Morgan Lewis picked up Dubai-based investment management partners Victoria Ferres from A&O Shearman and Sami Ben Dechiche from Simmons & Simmons … Nelson Mullins added investment management and private funds partner Todd Gibson in Pittsburgh from K&L Gates.

The U.S. Federal Reserve cut interest rates in another divided vote … Elon Musk's SpaceX is looking to raise more than $25 billion through an initial public offering in 2026, a person familiar with the matter told Reuters … Thailand and Cambodia traded accusations of targeting civilians in artillery and rocket attacks, as President Trump said he would try to intervene … Australian teens mourned the loss of social media as a ban took effect … UNESCO recognized Italy's national cuisine as an "intangible cultural heritage."

sara.merken@thomsonreuters.com

@saramerken

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