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RRichardson, Patrick, Westbrook & Brickman Attorney Gordon Rhea Wins Acquittal in $300 Million Tax Fraud Case

CHARLESTON, S.C. — Richardson Patrick Westbrook & Brickman attorney Gordon Rhea represented the Chief Financial Officer of Kapok Management LP, J. David Jackson. Jackson was one of eight defendants indicted in the U.S. Virgin Islands on tax evasion, conspiracy and wire fraud charges. The IRS and the United States Department of Justice accused Jackson and Kapok Management of channeling $300 million through the Virgin Islands Economic Development Commission (EDC) program. For six years the I.R.S. and the U.S. and Virgin Islands governments investigated Mr. Jackson and Kapok, staging raids and searching and seizing records from the offices of Kapok directors. Hundreds of pages of documents and numerous taped conversations were presented to the jury as evidence against the defendants. Add to that, prosecutors called over 40 witnesses to the stand attempting to prove their case. RPWB attorney, Gordon Rhea and the defendants called a single witness. In what is believed to be an unprecedented victory, Jackson and eight other defendants were acquitted of all charges—a total of 21 counts; an undeniably striking victory in the face of overwhelming odds RPWB attorney Rhea and defense team members clearly identified that Kapok Management was in fact part of a government established and approved structured tax incentive program. Rhea said, "The program was intended to provide wealthy U.S. business owners with strong tax incentives to operate in the U.S.V.I. and in turn bring prosperity into the islands." Rhea went on to say, "This is a win-win situation. This verdict is a tremendous vindication for the EDC program and for Kapok and hopefully this verdict will lead to a re-invigoration of the EDC program."

PRESS RELEASE
DATE: 3/12/09
For Immediate Release
Contact: Mason Scott
mscott@rpwb.com