Judge freezes assets

Friday, Nov. 5, 2004 | 9:01 a.m.

A federal judge has temporarily frozen more than $500 million in assets owned by thousands of doctors and dentists who bought abusive tax shelters run by a San Diego investment company, the Justice Department announced Thursday.

The action, one of the largest of its kind, is rare and it is part of an effort by the Internal Revenue Service to clamp down on tax shelters it considers abusive.

About 4,000 doctors and dentists across the nation bought tax-reduction plans in recent years from the company, Xelan Inc., evading $420 million in taxes, not including interest and penalties, the Justice Department said in a statement. Also on Thursday, agents from the IRS and the FBI searched Xelan's headquarters in San Diego.

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