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IRS Examiner Seeks Payoff

Being examined by the IRS may be a financial institution's worst nightmare, so when former IRS International Examiner Dennis Lerner offered to influence a favorable outcome for the bank he was auditing in exchange for a high-paying private sector job, it may have seemed like a dream come true. Just over one year after the audit concluded, however, there was a rude awakening for all parties involved.

On September 27, 2012, a criminal complaint was filed in the Southern District of New York against Lerner, who violated several criminal statutes by disclosing the name of the whistleblower who alleged that the bank had unreported income, seeking a job at the bank while he was examining it, and attempting to influence his IRS colleagues throughout the course of the audit. Lerner's audit of the bank resulted in a settlement of $210 million of taxes on an alleged $1 billion in unreported income. The settlement wrapped up on August 10, 2011 - and Lerner was offered a job on August 11th.

According to the press release from the Department of Justice, Lerner faces a maximum 20 years in prison. 

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