Steven M. Etkind, a 57-year-old New York-licensed attorney and partner at a prominent law firm, was arrested today on federal charges of tax fraud, conspiracy to defraud the United States, and corruptly impeding the IRS. The charges stem from a brazen scheme to loot more than $3.5 million from charitable trusts he was entrusted to manage—funds meant for Jewish-sponsored organizations and other nonprofits.
Etkind, who served as head of the tax, trusts, and estates group at his firm and is also a Certified Public Accountant, was named co-executor of a $35 million estate following the 2008 death of a successful entrepreneur client. He was also appointed co-trustee of multiple charitable trusts set up under the client’s will, which explicitly directed assets be used solely for charitable donations.
Instead of honoring that mandate, Etkind and a co-conspirator allegedly created a sham charity to siphon off millions. According to the Manhattan federal indictment, they first routed legitimate donations to real Jewish charities to avoid suspicion, then redirected the funds into bank accounts they controlled through the fake organization. The stolen money funded a lavish 6,300-square-foot home with a swimming pool in Southampton, New York—purchased under a nominee’s name to hide ownership.
To cover their tracks, Etkind filed fraudulent personal, corporate, and charitable tax returns with the IRS. He also made repeated false statements during an IRS audit of the phony charity, investigators say. The indictment details a calculated effort to obstruct federal tax laws, using his dual expertise in law and accounting to manipulate the system from within.
If convicted, Etkind faces a statutory maximum of five years in prison on the conspiracy charge, five years for each count of tax evasion, and three years for obstructing the internal revenue laws. While these penalties are set by Congress, the actual sentence, if any, will be determined by the presiding judge.
The case is being prosecuted by the Southern District of New York’s Complex Frauds Unit, with Special Assistant U.S. Attorneys Jorge Almonte and Jack A. Morgan leading the charge. Authorities, including IRS Criminal Investigation and the DOJ’s Tax Division, hailed the takedown as a victory against white-collar corruption. The indictment remains an accusation; Etkind is presumed innocent until proven guilty in court.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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