FOR IMMEDIATE RELEASE:

October 01, 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 AND MAIL FRAUD

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

(HOUSTON, TX) United States Attorney Michael Shelby announced today that a superseding indictment has been returned against Houston attorney Gene Burd and former chiropractic clinic owner Paul Samson Christie. This new indictment supersedes the original indictment against both men filed in the court records in April 2004.

According to the original indictment on file with the court, both Burd and Christie were originally charged with one count of conspiracy to make false statements on tax returns. The original indictment also charged Burd with two counts of making a false statement on his 1996 and 1997 tax returns and Chrisite with one count of making a false statement on a tax return in regard to his 1997 return.

According to the superseding indictment on file with the court, the superseding indictment makes six additional charges against Burd, including five counts of mail fraud and one count of conspiracy to launder funds.

Both men face up to five years in prison and a fine of up to $250,000 for the tax conspiracy charge, and up to three years and another $250,000 fine on the false statement on income tax return charges. Burd faces up to thirty years in prison for each of the five mail fraud counts alleged against him with the possibility of a fine of up to $1,000,000. Burd also faces up to twenty years in prison and a fine of up to $500,000 if convicted of the conspiracy to launder funds count of the indictment.

The superseding indictment on file with the court alleges that Burd, Christie, and others conspired in a scheme to defraud insurance companies and people involved in car accidents and did not report the proceeds of their scheme as income to the IRS. The indictment charges that 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’ behalves and accepted offers of settlements 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. The indictment alleges that Burd had agreed with his clients that he was to receive a specific portion of the clients’ settlements. He actually received more than that specified portion of his clients’ money because 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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