Jerry Ackerman v. Howard K. Schwartz and Bassey, Selesko and Couzens P.C.

EASTERBROOK, Circuit Judge.

In 1983 and 1984 Gary Van Waeyen-berghe and Carl Leibowitz promoted a tax shelter: each $10,000 invested would produce an immediate tax credit of $20,000, a deduction of $10,000, and the opportunity to reap profits from an ethanol manufacturing business. Like most opportunities too good to be true, this was too good to be true — although that did not stop more than 100 persons from taking the bait. The IRS disallowed the deductions and credits while tacking on interest and penalties. To make matters worse, Van Waeyenberghe and Leibowitz siphoned off the cash. Both…