Joe Francis Files Lawsuit in L.A. Superior Court Against Ex-Accountant Who Turned Him in to the IRS

Joe Francis Files Lawsuit in L.A. Superior Court Against Ex-Accountant Who Turned Him in to the IRS

'Girls Gone Wild' founder's lawsuit is an indictment of an 'IRS Gone Wild'

LOS ANGELES, July 31 /PRNewswire/ -- Joe Francis, the founder of the "Girls Gone Wild" video series and CEO of Mantra Films, filed a fraud lawsuit late Thursday against Michael Barrett, the former Mantra Films corporate accountant, in the Santa Monica division of Los Angeles Superior Court.

The lawsuit alleges that Barrett, also a certified public accountant, failed his fundamental duties and tasks to Francis as the corporate accountant for Francis. According to the suit, Barrett knew there were mistakes in tax returns, returns he knew were based on his accounting ledgers he prepared, created and vouched for. Barrett never disclosed these mistakes to his client and outside tax CPAs, despite knowing both relied upon him. Barrett then later demanded a bounty for the mistakes he failed to disclose to his client, seeking IRS action against Francis so that Barrett could make millions of dollars under a little-known and controversial IRS informant bounty program. http://www.irs.gov/foia/article/0,,id=132336,00.html

"IRS informant rules permit a CPA who actually plans and initiates the tax return mistakes to still collect the tax informant reward, which in this case could go as high as $10,000,000," said Robert Bernhoft, the attorney for Francis. Bernhoft added: "If the case goes criminal, the tax rat gets even more. Outraged American taxpayers should demand an immediate end to this IRS-Gone-Wild program."

Francis was recently arraigned in Los Angeles federal court on tax evasion charges. Bernhoft and Robert Barnes, both of the firm Bernhoft Law, represent Francis in the civil suit against Barrett and the federal criminal tax case against Francis.

According to the IRS's own informant rules: (http://www.irs.gov/compliance/article/0,,id=181290,00.html)

"A finding of fraud in a tax case carries some significant additional implications for penalties, fines and jail time. In the context of whistleblower claims, it also has statute of limitations implications that can make a big difference for the whistleblower."

"If the whistleblower planned and initiated the actions that led to the underpayment of tax, or the violation of the internal revenue laws, the award may be reduced."

ABOUT BERNHOFT LAW

Bernhoft Law is one of the nation's leading boutique law firms specializing in complex litigation in federal criminal and civil courts and international asset fraud recovery. Robert Bernhoft and Robert Barnes of the firm obtained felony acquittals for the actor Wesley Snipes. Mr. Bernhoft also previously obtained acquittals on all felony counts for former IRS investigator Joe Bannister (a trial memorialized in Pulitzer Prize-winning David Cay Johnston's "Perfectly Legal").

Bernhoft Law has offices in Milwaukee, Wisconsin, and Malibu, California. Website: http://www.bernhoftlaw.com/

http://www.meetjoefrancis.com/irsgonewild

First Call Analyst:
FCMN Contact:

Source: Bernhoft Law

CONTACT: Holly M, +1-310-566-1803, hollym@mantraent.com, for Mantra
Films, Inc.; or Ross Johnson of Los Angeles Strategic, media representation
for Bernhoft Law, +1-310-780-8117, ross_johnson@lastrategic.com

web site: http://www.bernhoftlaw.com/

-------
Profile: intent