A couple of Al Parish-related stories are in the news today. First off, in an update to the fallen economist's slow-but-sure trip to his home for the next two decades in North Carolina, he's now being held at the federal U.S. Penitentiary in Atlanta. And second, the firm that used to do Parish's taxes, Legare & Bailey, has agreed to pay $1 million in a court settlement to avoid any claims that they helped Parish in his Ponzi scheme.
Parish was in the U.S. Penitentiary in Atlanta on Monday, according to federal Bureau of Prisons' inmate location records.
The site houses medium security male inmates, and has a detention center for pre-trial and holdover inmates. It also has a satellite camp for minimum security male inmates.
Shortly after his sentencing last month, Parish was sent to the Irwin County Detention Center in Ocilla, Ga., about an hour's drive north of Florida. He hopes to ultimately be held at the Butner Federal Correctional Complex in North Carolina.
From the Charleston Regional Business Journal:
Legare & Bailey LLC knew nothing of Parish’s Ponzi scheme, according to an investigation by the court-appointed receiver in the case, Hays Financial Consulting, which is trying to recover money for Parish’s investors.
The tax preparer should have, however, recognized several “red flags” in Parish’s income tax returns that could have alerted Legare to fraudulent activity, Hays alleged in a settlement motion filed in court July 16. Parish reported his annual income, for example, as $76,000.
In the settlement motion, Legare denied the receiver’s allegations and any wrongdoing or liability in the case but sought to settle to avoid the “time, expense and distraction of litigation, as well as the related risk of substantial damage awards.”
The settlement includes a payment equal to 92.5 % of the $1 million policy limit on Legare’s professional liability insurance.