Lawyer pleads not guilty in tax, charity cases

March 25, 2009 7:25:00 AM PDT
An eastern Pennsylvania criminal lawyer who has won millions for clients in police brutality suits has pleaded not guilty to federal charges of tax fraud and money laundering. Allentown attorney John Karoly was indicted earlier this month for allegedly failing to report $5 million in income and attempting a $500,000 scam involving his own church and the nonprofit Lehigh Valley Community Foundation, a charitable organization.

An earlier indictment, in September 2008, accused Karoly of submitting fake wills for the estates of his brother and sister-in-law. He also has pleaded not guilty in that case.

Karoly's lawyer, Robert Goldman, says they are looking forward to going before a jury on the two cases and they "expect to obtain an acquittal and vindication.'

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