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Tax consultant indicted in theft case

Erica D. Johnson

Tuesday, June 10, 2003 | 11:02 a.m.

A tax consultant was indicted last week on charges that he stole more than $670,000 in federal income tax money from Glen Lerner, the personal injury attorney known for his frequent television commercials in which he refers to himself as "the heavy hitter."

The indictment, unsealed Friday before District Judge Michael Douglas, charges Dennis Franklin Morgan with 21 counts of theft. Morgan faces a one- to 10-year sentence on each theft count if convicted, but he could also receive probation for each charge, prosecutors said.

Authorities allege that Morgan, who worked as an independent tax consultant, stole about $671,327 of the law firm's federal income tax payments between December 1999 and February 2002.

The money was taken in increments ranging from $4,800 to $104,000, according to the indictment.

"The evidence showed that there were taxes that were not being paid for given tax years," Chief Deputy District Attorney James Sweetin said.

Douglas issued a summons for Morgan to make his first court appearance before District Judge Kathy Hardcastle on June 18.

Morgan's attorney, Steve Wolfson, did not immediately return calls for comment.

Lerner this morning said: "Attorneys are no different than any other business. If you own a business, you are always a potential victim of crime."

Prosecutors alleged that Morgan took dozens of checks Lerner gave him to pay the IRS and cashed the checks at Lerner's bank instead, Sweetin said.

Lerner's firm was forced to pay taxes twice as a result of the alleged theft, Lerner said.

"The misappropriated monies were to pay IRS taxes and the IRS never received those initial payments," he said. "Thus, we had to pay those taxes."

The bank, and not the IRS, initially informed Lerner that there could be a problem, Sweetin said.

"Mr. Lerner was contacted by the bank as to these large checks suspiciously being cashed by this person," he said. "Then he figured it out."

Lerner said Morgan's alleged actions didn't interrupt the firm's business and had little affect on his professional and personal life.

"Business has run as usual," he said. "If this is the worst thing that happens in my life, then I have led a very blessed life."

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