A University of Minnesota law professor admitted in federal court Thursday to underreporting nearly $600,000 in income to the Internal Revenue Service.
Edward S. Adams originally faced a much more serious 14-count indictment alleging he orchestrated a scam to embezzle millions from investors. In taking a plea deal, he pleaded guilty to one of those charges, a misdemeanor crime likely to result in no prison time.
Adams joined the university's law school in 1992 and specializes in commercial, bankruptcy and corporate law. He's still a university employee, and he's been on paid leave since 2017, said Jake Ricker, a spokesman for the law school, in an e-mail. His salary is $170,820 a year.
In light of Adams' plea Thursday, Ricker said, "his status will be reviewed in accordance with University policies and procedures."
Adams' attorney declined to comment for this story.
Because Adams avoided a felony offense, it's unclear if he will lose his license to practice law.
According to the plea agreement, Adams underreported his federal tax income from 2008 to 2010, including failing to report the sale of stock in 2008, 2009 and 2010 for a total of $596,000. In an agreement with the IRS in 2015, he paid $118,000 in taxes owed on that income, according to court documents.
The original indictment alleged Adams stole more than $4.38 million from investors and paid more than $2.54 million to his own law firm. Adams held several positions at Apollo Diamond and Apollo Diamond Gemstone Corp. According to the charges, he defrauded investors by misrepresenting where their money would be going. Instead of to those companies, the money went to accounts Adams controlled.