Partner

Education

University of Maryland School of Law, J.D., 1976

College of Notre Dame of Maryland, B.A., cum laude, 1971

Photo of Paula M. Junghans

Paula M. Junghans

Overview
Experience
News
Affiliations

Described as a “complete superstar” by Chambers USA, Paula M. Junghans is a seasoned trial lawyer who has tried complex cases in courts throughout the United States. She has more than 35 years of experience in federal tax litigation and white collar criminal matters, and has the valuable perspective of having served both as a defense lawyer and a supervising prosecutor. She has represented clients in civil, criminal, and administrative proceedings involving diverse industries and issues. At Zuckerman Spaeder LLP, Ms. Junghans maintains a varied litigation and trial practice. In addition to tax controversies, Ms. Junghans has represented individuals involved in a wide array of federal criminal investigations and prosecutions involving conspiracy, mail and wire fraud, bank fraud, health care fraud, currency transactions offenses, environmental crime, and money laundering.

As a prosecutor and Acting Assistant Attorney General of the Tax Division of the U.S. Department of Justice, she supervised the litigation of tax cases throughout the United States. In her current practice, she draws on her experience in tax procedure, as well as in the interrelationship between criminal and civil tax issues, to counsel individuals and businesses on complex investigations and prosecutions.

Ms. Junghans co-authored a treatise on federal tax litigation and is a frequent speaker and writer on matters involving tax procedure and white collar crime. She is a fellow of the American College of Trial Lawyers, the American College of Tax Counsel and is listed in The Best Lawyers in America, Who’s Who Legal: The International Who’s Who of Business Lawyers, and Washingtonian magazine’s “30 Best Lawyers.”

Professional Highlights

  • Ms. Junghans was lead counsel for a commercial aviation leasing company and its president and CEO in a seven-week jury trial in the U.S. District Court, Northern District of Illinois. The U.S. Securities and Exchange Commission sued the company and its president in 2007, alleging that the company was insolvent and was misusing investors’ funds, but Ms. Junghans’ team defeated the SEC’s effort to appoint a receiver and freeze the company’s assets. In 2010, a criminal indictment alleging various wire fraud, bank fraud, tax, and obstruction of justice offenses was returned.
  • Ms. Junghans represented the lead defendant in one of the largest tax shelter cases ever brought in a two-month criminal fraud trial. The client, who had been a partner at the accounting firm of Ernst & Young (E&Y), was indicted with three other E&Y partners on multiple counts, including tax evasion and obstruction of justice. The case centered on the legality of certain tax shelters that were marketed to high net-worth individuals and designed to reduce, or eliminate, income taxes. It also involved complex tax transactions and novel issues of criminal liability arising from the conduct of professionals engaged in tax planning.
  • Defended the former CEO of Westar, an electrical utility, in a criminal prosecution in the U.S. District Court, District of Kansas. The government investigated him for wire fraud, conspiracy, money laundering, and circumventing internal company controls. This case, which the press dubbed the “Enron of Kansas,” involved two trials—the first ended in a hung jury; the second ended in convictions that the U.S. Court of Appeals, 10th Circuit overturned. All charges against the client were dismissed prior to a scheduled third trial.
  • Defended the former CEO of Westar, an electrical utility, in a criminal prosecution in the U.S. District Court for the District of Kansas for wire fraud, conspiracy, money laundering, and circumventing internal company controls. This case, which the press dubbed the “Enron of Kansas,” involved two trials—the first ended in a hung jury; the second ended in convictions that the U.S. Court of Appeals, 10th Circuit overturned. All charges against the client were dismissed prior to a scheduled third trial.
  • Represented a commercial aviation leasing company and its president and CEO in a seven-week jury trial in the U.S. District Court for the Northern District of Illinois. The U.S. Securities and Exchange Commission sued the company and its president in 2007, alleging that the company was insolvent and was misusing investors’ funds, but we defeated the SEC’s effort to appoint a receiver and freeze the company’s assets. In 2010, a criminal indictment alleging various wire fraud, bank fraud, tax, and obstruction of justice offenses was returned.
  • Represented the lead defendant in one of the largest tax shelter cases ever brought in a two-month criminal fraud trial. The client, who had been a partner at the accounting firm of Ernst & Young (E&Y), was indicted with three other E&Y partners on multiple counts, including tax evasion and obstruction of justice. The case centered on the legality of certain tax shelters that were marketed to high-net-worth individuals and designed to reduce, or eliminate, income taxes. It also involved complex tax transactions and novel issues of criminal liability arising from the conduct of professionals engaged in tax planning.
  • Represented a minister, who conducts his ministry through music, in a tax case in which the client was accused of wrongly excluding from reported income parsonage allowances on two homes.
  • Defended an accountant who was accused of providing fraudulent tax planning advice by counseling customers on how to reduce their federal tax liabilities. The government filed an injunction proceeding against the client to forbid him, his son, and his companies from preparing tax returns—a move that would effectively destroy his business and livelihood. After an evidentiary hearing, the court denied the motion for preliminary injunction. Of the more than 400 similar injunction actions brought by the Tax Division of the U.S. Department of Justice in the last several years, this is one of a very few in which the return preparer prevailed.
  • Defended a physician against charges of tax evasion after officers, who were searching his home and office for evidence in an unrelated investigation, found records of his stock market activity that allegedly show he failed to report capital gains in 1998 and 1999.
  • Represented a law firm in responding to subpoenas and notification that three of its attorneys were the subjects of a grand jury investigation in a tax shelter investigation in the Southern District of New York. The matter was closed without any adverse action for the firm or its attorneys.
  • Currently representing an insurance company in an IRS "promoter penalty" examination.
  • Represented an AmLaw 100 firm in responding to and litigating issues arising from subpoenas for documents and testimony issued to the firm and one of its partners. The litigation involved crime-fraud and work-product issues in connection with a federal grand jury investigation of two of the firm’s former clients. The court sustained most of the work-product privileges claimed on behalf of the firm, and the decision was affirmed by the U.S. Court of Appeals, 5th Circuit. We continue to represent the firm and the same partner in connection with testimony in a follow-on U.S. Securities and Exchange Commission (SEC) civil enforcement suit brought against the clients.
  • Currently represents a law firm and its managing partner in connection with Internal Revenue Service (IRS) summonses issued to the firm related to transactions engaged in by several of the firm’s clients.
  • Represented a regional accounting firm in an IRD "promoter penalty" examination ans subsequent litigation related to conservation easements.
  • Represented a senior partner at an AmLaw 100 firm in a proceeding before the Office of Professional Responsibility of the Internal Revenue Service (IRS). The client was accused of abusing an IRS agent during a meeting and other generally obstreperous and unprofessional conduct. The client received a private reprimand.

News

Appearances

Publications

Bar Admissions

Court Admissions

Professional Affiliations

  • American Bar Association, 1976–present
    • Member, Tax and Criminal Justice Sections
    • Chair (1995-1997) and Vice Chair (1993-1995), Committee on Criminal and Civil Tax Penalties of Tax Section
  • Maryland State Bar Association, 1977–present
    • Board of Governors, 1984-1986
  • American College of Tax Counsel, 1994–present
  • Fellow, American College of Trial Lawyers
  • ALI-ABA Advisory Panel on Criminal Law, 2006–present
  • Maryland Criminal Defense Attorneys Association, 1988-1998
    • President, 1997-1998
    • President Elect, 1996-1997
    • Treasurer, 1994-1996
    • Board of Governors, 1994-1998

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