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Monday, September 29, 2008

Outrage: Elderly Tax Lawyer Told He Can't Write Off Hookers

A state judge has ruled that a 77-year-old Bay Ridge tax lawyer must pay back taxes after wrongfully deducting more than $300,000 for prostitutes, porn, sex toys and erotic massages. After the verdict, the defendant William Halby told the Post, "I live a solitary life. I have no social life. I needed that release." So he dutifully documented each liaison in a notebook titled "Tax Journal," in case he ever got audited. Turns out that in 2002 alone, Halby deducted $111,364 for "therapeutic sex" and massages "to relieve osteoarthritis and enhance erectile function through frequent orgasm." He argued that the write-offs were necessary medical expenses. But because "significant portions" of his sex therapy was, you know, illegal, they can't be written off. The state auditor also argued that "in addition to being illegal in New York State, these expenses are not substantiated with receipts."


KINKY BID TO BE TAX XXX-EMPT
The New York Post by BRENDAN SCOTT and KEVIN FASICK - September 19, 2008

This was not the "happy ending" William Halby was looking for. The 77-year-old Brooklyn lawyer owes tens of thousands of dollars in back taxes for wrongly deducting more than $300,000 in prostitutes, porn, sex toys and erotic massages, a state tax judge ruled yesterday. The ruling came despite the meticulous efforts of Halby - a tax lawyer - to prove the deductions were reasonable medical expenses in his effort to fight depression and erectile dysfunction brought on by age. "I was depressed," Halby, who's divorced, semi-retired and living alone in a Bay Ridge apartment, told The Post yesterday. "I live a solitary life. I have no social life. I needed that release." Halby said he found his "sex surrogates" - preferably brunettes - through ads in The Village Voice and sometimes visited them several times a week. "Over the years, I've been with dozens of girls for full-body massage with . . . happy ending," he said. All told, Halby spent about $322,000 to satisfy his desires, according to court papers.

In 2002 alone, Halby deducted $111,364 for "therapeutic sex" and massages "to relieve osteoarthritis and enhance erectile function through frequent orgasm." He claimed another $2,173 on porn "to enhance sexual performance in lieu of taking Viagra." In 2003, his $101,930 in deductions included $162 for "sexual performance aids" such as lubes, condoms and nipple clamps, the court papers said. But the Department of Taxation and Finance roundly rejected the deductions, leaving the septuagenarian sex addict with a $24,271 state tax bill. "It must be noted that portions of [Halby's] 'sex therapy' were, in fact, sex for a fee, in violation of penal law," Administrative Law Judge Brian Friedman wrote. Halby, who faces similar action by the IRS, said he will appeal.

A former counsel for the Equitable Life Insurance Society of the United States, Halby represented himself through the proceedings. He meticulously recorded each liaison in a notebook titled "Tax Journal," including the cost and practitioners' first names. When auditors challenged the expenses, he produced books and articles demonstrating the health benefits of sex, including a 2001 New York Post article about the use of sex workers in Danish nursing homes. A state auditor dryly rejected the arguments. "Illegal treatments cannot be included in expenses," the auditor said. "In addition to being illegal in New York state, these expenses are not substantiated with receipts." Halby is "of counsel" with the Larchmont law firm McMillan, Constabile, Maker & Perone. Halby infrequently assists the firm with tax issues. A firm partner, Stewart McMillan, had not heard of Halby's tax troubles. "He seems like a nice man," McMillan said. "He's thought of as a good tax lawyer." brendan.scott@nypost.com

9 comments:

eliot said...

When did this happen? Why did this Happen? I've been writing off hookers for 30 years! What the hell is this world coming to....

Louise Uccio said...

Just when you thought you'd heard it all..

This guy's a trip!

(Shaking my head) writing off hookers .. dayum that was creative!

Anonymous said...

does he know spitzer?
maybe that guy and spitzer could try to change the tax law

This Guys needs to eb Committed with the rest of the LOSER LAWYERS said...

Wow, this guy has to know Eliot Spitzer and Allen Isaac, because Birds of a Feather Flock together.

Anonymous said...

Can lawyers deduct their payments to the whore judges? Since this is condoned behavior; it should be tax deductible. It's great that we have male and female whore judges; no discrimination based on sex.

taxpayer said...

Can anyone point me to an IRS chart that shows exactly which sex acts with hookers provides more of a write off?

Anonymous said...

He should have done what an upstate judge does...write them off as temporary foster children..since they were always 30 yrs younger and many were teens!
He doesn't sound like a good tax lawyer to me!

Anonymous said...

Where is Saint Andrew who had promised to remove corruption? Saint Andrew has morphed into another Spitzer. Are the whores he visits just judges and attorneys or does he prefer the more exotic types preferred by Spitzer

Anonymous said...

Maybe he should have gotten corrupt Gary I. Greenwald, Esq. to use the bank under his control in Orange County for his private financial deals. Upin information and belief Gary does wonder in helping hide money in that bank.

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