A Palm Beach Gardens man was sentenced to 48 months in prison for tax evasion in connection with substantial legal fees he earned in Pennsylvania.On Thursday, U.S. District Judge Malachy E. Mannion for the Middle District of Pennsylvania ordered Robert J. Powell, 66, to serve three years of supervised release and to pay $3.5 million in restitution to the United States and a $100,000 fine.Before moving to Florida, he practiced law in Luzerne County in Wilkes-Barre.Your neighborhood: Local coverage from WPBF 25 NewsCourt records show Powell has lived in a Palm Beach Gardens mansion since serving a prison sentence in 2023 for failing to report the $2.8 million “Kids for Cash” kickback scheme.In August 2024, he pleaded guilty to a one-count criminal information charging him with tax evasion for calendar year 2016, in connection with substantial legal fees he earned while associated with The Powell Law Group.Powell was released on an unsecured bond while awaiting his sentencing.”For over a decade, Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned,” U.S. Attorney Gerard Karam said after he pleaded guilty. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question, and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors, and support staff for their hard work that will allow justice to be finally served in this important case.”For the tax years 2010 through 2022, Powell didn’t file personal returns even though he earned income during each of those years and was required to file, the U.S. Department of Justice said.Originally, an accountant filed a tax extension request that falsely reported zero estimated tax, DOJ said.After his suspension and disbarment from the practice of law, Powell collected future fees collected by his former firm for representing thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015, DOJ said.Powell’s firm expected to receive approximately $120 million in attorneys’ fees from that settlement. They used the fees as collateral to obtain loans totaling over $125 million, prosecutors said.Instead of depositing loan proceeds into firm bank accounts and using them to pay firm expenses, Powell directed the loans to nominee bank accounts under his control, prosecutors said. Loan fees were used to pay his personal debts and expenses, as well as for the personal benefit of his former law partner and himself, DOJ said.In June 2016, most of the attorneys’ fees were finally disbursed and the loans repaid. Powell did not file a personal income tax return and pay taxes on those fees, even though he personally received an additional $3.6 million of the fees.In 2019, the IRS audited Powell. Powell made false statements in an attempt to conceal his income and expenditures, including informing the IRS that his only source of funds was loan advances, he and his spouse did not have signature authority or control over other bank accounts, and he had no ownership in any corporations. Get the latest news updates with the WPBF 25 News app. You can download it here.In 2011, he was sentenced to 18 months behind bars after pleading guilty to bribing two Luzerne County judges and helping conceal those payments from tax authorities, known as a “Kids for Cash” scandal.Stay up-to-date: The latest headlines and weather from WPBF 25
A Palm Beach Gardens man was sentenced to 48 months in prison for tax evasion in connection with substantial legal fees he earned in Pennsylvania.
On Thursday, U.S. District Judge Malachy E. Mannion for the Middle District of Pennsylvania ordered Robert J. Powell, 66, to serve three years of supervised release and to pay $3.5 million in restitution to the United States and a $100,000 fine.
Before moving to Florida, he practiced law in Luzerne County in Wilkes-Barre.
Your neighborhood: Local coverage from WPBF 25 News
Court records show Powell has lived in a Palm Beach Gardens mansion since serving a prison sentence in 2023 for failing to report the $2.8 million “Kids for Cash” kickback scheme.
In August 2024, he pleaded guilty to a one-count criminal information charging him with tax evasion for calendar year 2016, in connection with substantial legal fees he earned while associated with The Powell Law Group.
Powell was released on an unsecured bond while awaiting his sentencing.
“For over a decade, Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned,” U.S. Attorney Gerard Karam said after he pleaded guilty. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question, and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors, and support staff for their hard work that will allow justice to be finally served in this important case.”
For the tax years 2010 through 2022, Powell didn’t file personal returns even though he earned income during each of those years and was required to file, the U.S. Department of Justice said.
Originally, an accountant filed a tax extension request that falsely reported zero estimated tax, DOJ said.
After his suspension and disbarment from the practice of law, Powell collected future fees collected by his former firm for representing thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015, DOJ said.
Powell’s firm expected to receive approximately $120 million in attorneys’ fees from that settlement. They used the fees as collateral to obtain loans totaling over $125 million, prosecutors said.
Instead of depositing loan proceeds into firm bank accounts and using them to pay firm expenses, Powell directed the loans to nominee bank accounts under his control, prosecutors said. Loan fees were used to pay his personal debts and expenses, as well as for the personal benefit of his former law partner and himself, DOJ said.
In June 2016, most of the attorneys’ fees were finally disbursed and the loans repaid. Powell did not file a personal income tax return and pay taxes on those fees, even though he personally received an additional $3.6 million of the fees.
In 2019, the IRS audited Powell. Powell made false statements in an attempt to conceal his income and expenditures, including informing the IRS that his only source of funds was loan advances, he and his spouse did not have signature authority or control over other bank accounts, and he had no ownership in any corporations.
Get the latest news updates with the WPBF 25 News app. You can download it here.
In 2011, he was sentenced to 18 months behind bars after pleading guilty to bribing two Luzerne County judges and helping conceal those payments from tax authorities, known as a “Kids for Cash” scandal.
Stay up-to-date: The latest headlines and weather from WPBF 25
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