Quimbee logo
DMCA.com Protection Status

United States v. Regan

937 F.2d 823 (2d Cir. 1991)

Case BriefRelatedOptions
From our private database of 34,000+ case briefs...

United States v. Regan

United States Court of Appeals for the Second Circuit

937 F.2d 823 (2d Cir. 1991)

Facts

James Regan (defendant) was a managing partner of Princeton-Newport Partners (PN) (defendant), a stock-brokerage firm. Regan was the firm’s tax expert. On Regan’s advice, PN engaged in a number of transactions in which PN temporarily sold stock to other brokerage firms at a loss so that it could deduct the losses on its tax returns. PN would later repurchase the stock from the other firms at an agreed-upon repurchase price rather than the market price at the time of repurchase. When PN sold the stock to the other firms, it made an oral agreement to repurchase the stock sometime in the future. While the other firms owned the stock, they had complete control over the stock purchased from PN. PN had no enforceable right to repurchase the stock sold to other firms. Regan believed that the tax deductions taken from these transactions were proper and that they were not considered stock-parking transactions under Internal Revenue Code (I.R.C.) § 1058. Regan based his opinion on communications with PN’s accountants, a New York City bar-association report, and his own interpretation of relevant statutes and regulations. The government (plaintiff) charged Regan and PN with tax fraud based on these alleged stock-parking transactions. At trial, Regan and PN sought a jury instruction stating that if they relied on a good-faith belief that their actions complied with I.R.C. § 1058, they could not be held criminally liable for tax fraud. The court declined to give such an instruction because it had determined that PN had violated § 1058 as a matter of law. Regan and PN were convicted of tax fraud in addition to several other crimes. Regan and PN appealed.

Rule of Law

Issue

Holding and Reasoning (Van Graafeiland, J.)

Concurrence/Dissent (Mahoney, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 607,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 607,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 34,000 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 607,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 34,000 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership