Ex-Bechtel Lawyer Acquitted in Tax-Credit Prosecution

12/22/08

The Northern Californa jury deliberated for little more than an hour in a trial that lasted five days in an Oakland courtroom. Federal prosecutors declared that Muntean, an attorney, knew that a $3.3 million research and development credit claimed by Bechtel was improper but pushed for it anway. Because the project in Idaho was financed by the government, Bechtel was not allowed to benefit from the credit. John Youngquist, Muntean's lawyer, countered that his client counted on subordinates to give him all the information, and they didn't. After Idaho tax authorities raised questions, Bechtel corrected the error.

Former tax chief in the Northern District US Attorney's Office, Jay Well (who was not involved with the case), said that he had never seen a similar prosecution which involved a "case against some in-house guy within a corporation".

The case likely came about because Bechtel brought in John Williams Jr, former chief counsel of the IRS under President Bush, to do an internal investigation. Williams then pointed out Muntean and turned the contents of his probe over to the government. Without the Shearman probe, the government wouldn't have focused on Muntean, Youngquist contends.

Bechtel's media and public affairs manager Francis Canavan said in an emailed statement that the company "had no role in the U.S. Attorney's decision to indict Mr. Muntean and had no interest in the outcome of this criminal case."