FOR IMMEDIATE RELEASE:

April 12, 2004

John Yembrick   
Public Affairs Specialist          
P. O. Box 61129 Houston, TX 77208
Phone: 713/567-9388 Fax: 713/718-3389
E-Mail: usatty.txs@usdoj.gov

LAWYER INDICTED FOR TAX FRAUD

Contact AUSA: Stephen Corso
Phone: 713/567-9000

(HOUSTON, TX) United States Attorney Michael Shelby announced today that Gene Burd and Paul Samson Christie were indicted by a federal grand jury for tax related offenses. Both Burd and Christie were charged with one count of conspiracy to make false statements on tax returns. Burd was charged with two counts of making a false statement on his tax returns for the years 1996 and 1997. Christie was charged with one count of making a false statement on a tax return in regards to his 1997 return. Both men face up to 5 years in prison and a fine of up to $250,000 for the conspiracy charge, and up to 3 years and another $250,000 fine on the false statement charges.

The indictment alleges that Burd and Christie, owners of chiropractic clinics, conspired in a scheme to defraud insurance companies and people involved in car accidents and not report the proceeds of their scheme as income to the IRS. Burd, an attorney practicing in the Houston area, hired runners to solicit people involved in car accidents to use his legal services. Once the victims entered contingency fee contracts, Burd directed them to submit to treatment at chiropractic clinics specified by Burd's office. Burd filed personal injury claims on his clients' behaves and accepted offers of settlement made by insurance companies without his clients' knowledge or consent. Burd then disbursed the proceeds of the settlements by writing checks to himself for his legal fees, paying the clinic fees his clients incurred, and paying the clients whatever remained of the settlement. In fact, the chiropractic clinic owners, including Christie, had pre-arranged with Burd to kick back in cash one-half of the clinic fees. The indictment alleges that neither Burd nor Christie accounted for this cash income on their tax returns filed in 1996 and 1997.

This case was investigated by special agents of the United States Department of the Treasury, Internal Revenue Service. Assistant United States Attorneys Stephen Corso and Jay Hileman are prosecuting the case.

Criminal complaints and indictments are accusations of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.

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040412-Burd