Ex-corporate lawyer to plead guilty to not paying federal taxes on $3.4 million of income

Eric E. Lenzen, once a leading partner at a major Milwaukee law firm, may be heading to federal prison.

Lenzen, of Mequon, is agreeing to plead guilty to failing to pay taxes on about $3.4 million of income he received in 2016 and 2017, according to documents filed in U.S. District Court in Milwaukee.

Lenzen led the national Financial Services & Capital Markets Industry team at the Milwaukee law firm Husch Blackwell before he and six other partners joined Dykema Law, a national firm. Prior to the move, he was placed on leave in May 2021 "to address his financial, tax and personal problems," according to a 2022 Reuters story.

In recent days, prosecutors agreed to recommend a sentence of no more than 16 months for Lenzen, according to a plea agreement between Lenzen and the U.S. Attorney's office. The agreement notes that federal sentencing guidelines recommend a sentence of 30 to 37 months.

Lenzen also agreed to pay restitution on nearly $4 million for taxes owned from 2016 to 2021 plus interest and penalties, the plea agreement states.

The plea agreement notes that Lenzen, an attorney for about 20 years, was not paying income taxes on his seven figure annual income. In 2016, he received taxable income of $1.16 million and he made nearly $2.43 million the following year, the agreement states.

The plea agreement notes that Lenzen was required to pay federal income taxes of $171,031 on his 2016 income. By 2020, he earned more than $2.2 million and owed $868,499 in federal taxes that year, the agreement states.

All told, from 2016 through 2021 he owed nearly $4 million in taxes, interest and penalties, the agreement signed by Lenzen and prosecutors states. His law license is currently suspended for failing to take continuing legal education classes, according to the lawyer search site maintained by the State Bar of Wisconsin.

Lenzen "knew that he was required by law to pay these amounts to the IRS, but knowingly, intentionally and willfully failed to do so, " according to the plea agreement.

A story posted on the American Lawyer's website in 2022 noted there were questions being raised about Lenzen by the Husch firm.

The publication noted on its online page that in a statement issued by Husch, the firm "said it fired Lenzen, a corporate partner, in summer 2021 after learning about what it deemed “highly irregular activity."

The American Lawyer noted the disclosure by Husch was unusual. "Law firms rarely acknowledge the tension underlining any lateral attorney move," the American Lawyer wrote.

A Dykema release issued when the seven Husch lawyers joined the firm praised Lenzen noting he has represented "domestic and international companies, including emerging companies, private equity and venture capital funds, institutional investors, insurance companies, underwriters, and family offices."

Lentzen's attorney did not return calls for comment Friday.

Contact Cary Spivak at (414) 550-0070 or cspivak@jrn.com. Follow him on Twitter at @cspivak.

This article originally appeared on Milwaukee Journal Sentinel: Eric Lentzen, once a prominent Milwaukee lawyer, admits to tax evasion