The $130 Million Celebrity Scam: Two Wall Street Firms

Two Wall Street firms are accused of a huge tax-shelter fraud

Two Wall Street firms are accused of a huge tax-shelter fraud

The deal seemed ideal for show business personalities and other wealthy investors. Two Wall Street firms promised to put their money into safe, high-yielding Government securities. Moreover, said the brokerage houses, they would manage the accounts so that customers would get large income tax deductions. Among the 88 investors enticed into laying out at least $600,000 apiece in cash and notes to one of the firms were Actor Sidney Poitier, Television Producer Norman Lear and Composer Henry Mancini.

Last week a federal grand...

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