Federal Judge Cites Article Written by University Professors

Published: May 30, 2013

Federal Judge Cites Article Written by University Professors

CORPUS CHRISTI, Texas – A federal judge of the United States Court of Federal Claims cited an article written by two Texas A&M University-Corpus Christi professors.

Dr. Brian Elzweig, Associate Professor of Business and Dr. Valrie Chambers, Professor of Business wrote the article titled “Modernizing the Theft Loss Deduction for Victims of Securities Frauds and Ponzi Schemes,” which was cited by Judge Francis Allegra, United States Court of Federal Claims.

The article was mentioned during the Goeller v. United States trial in late March of this year.

Judge Allegra’s citation noted the anomaly that in order to claim a theft loss deduction on ones taxes, the “theft” must meet the definition of theft in the state law in which the alleged theft occurred. A theft violation of federal law that does not meet the definition theft under the state in which it occurred would not lead to the availability of the theft loss.

He cited the paper stating “Can it be that when a conviction for theft is obtained under…federal statutes, a taxpayer harmed by that conduct must still gauge the deductibility of his losses by hypothetically applying a state criminal law? Of course not; none of this, indeed, makes the least bit sense.” This could lead to a major change in federal law based in part on the research by Elzweig and Chambers.