The Senate Finance Committee is asking the IRS to investigate two former Baker McKenzie lawyers who advised wealthy clients on Puerto Rico's lucrative tax break, known as Act 60. Senator Ron Wyden sent a letter on April 29 requesting a review of legal opinions provided by Jeffrey Rubinger and Summer LePree, who now work at Winston & Strawn.

The investigation centers on Dan Morehead, founder of cryptocurrency investment firm Pantera Capital, who relocated to Puerto Rico in 2021. Shortly after his move, his firm sold a large position generating capital gains exceeding $1 billion. A whistleblower claims Morehead accrued most of those gains while living in California and improperly avoided more than $100 million in federal taxes. Morehead maintains he acted appropriately and relied on professional tax advice.

The Justice Department and IRS criminal division are already investigating the two lawyers. Baker McKenzie received a grand jury subpoena from the U.S. attorney's office in Miami. Last year, investor Suresh Gajwani pleaded guilty to making a false statement to the IRS while using the Puerto Rico tax break to shield $30 million in capital gains, with court documents identifying Rubinger as his attorney. Rubinger disputes the allegations, saying his legal opinions were accurate.