Bail Decision Delayed in Tax Case

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federal district court judge on Monday delayed ruling whether the former longtime tax attorney of Haim Saban will be released on bail.

Matthew Krane, who appeared in a Los Angeles federal courtroom in a green windbreaker, shackles and a white jumpsuit, has been detained in a federal holding facility in downtown Los Angeles for 13 months on charges of money laundering and conspiracy in what federal prosecutors have called one of the largest tax evasion schemes in U.S. history. He is also accused of aggravated identity theft and filing fake passport documents.

At the heart of the case is a shelter that Krane used to allow his star client, Saban, to evade taxes on capital gains of $1.5 billion he made after selling his interest in the Fox Family Channel in 2001. Saban told the U.S. Senate in 2006 that he hadn’t understood the shelter was illegal, and paid $250 million in back taxes and penalties.

U.S. District Court Judge Dale Fischer has denied Krane bail in the past, ruling that he was a flight risk. During Monday’s bail hearing, Fischer said she was still “concerned” over the alleged fake passport documents.

Krane’s lawyer, Robert Barnes, argued that his client obtained a passport using a friend’s identity to protect himself from Saban who, Barnes said, “has a history of saying how he could have people whacked.”

A representative of Saban would not comment, saying that Saban’s camp did not want to dignify the statement with a response.

Barnes also argued that Krane would not flee because he has likely served all the time in custody that he would serve if convicted of the fake passport and aggravated identity theft charges.

Fischer is expected to rule on whether Krane will be released on bail in the coming weeks, after Barnes and federal prosecutors file revised documents on the matter.

The trial in the case is scheduled for late October.

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