Former Gov. Luis Fortuño has joined the Washington, D.C., law office of Steptoe & Johnson LLP as partner and will be working in the firm’s Corporate, Securities & Finance Group, as well as its Government Affairs & Public Policy Group.

Hiring Fortuño is part of the international law firm’s expansion into the Latin American market. The firm employs more than 500 attorneys and other professionals and has offices in Beijing; Brussels; Chicago; London; New York; Phoenix; Washington, D.C.; and Los Angeles and Century City, Calif.

In making the announcement, Steptoe Chairman Roger E. Warin said Fortuño «brings a track record of success from every position he has held.»

«Becoming governor immediately after the beginning of the global economic crisis, he developed and successfully implemented fiscal reforms that included public-private partnerships, tax cuts, regulatory streamlining and new sources of government revenue. In private practice, he has been a premier transactional lawyer in Latin America. Luis’ legal and public-policy experience, plus his relationships with decisionmakers in business and government, will be of great value to clients doing business in Latin America, as well as clients in Latin America expanding their operations internationally. His arrival will substantially enhance our growing Latin American practice,» Warin added.

Fortuño had a number of offers, but said he chose Steptoe because it has «an outstanding scope of work, conducted by lawyers performing at the highest-levels.»

«I was drawn in by the firm’s collegiality and spirit. I felt I would fit in perfectly with the people and the culture at the firm,» Fortuño said. «I am very excited about this opportunity, given my experience as a corporate attorney.»

Fortuño said that before joining the firm he received clearance from Puerto Rico’s Government Ethics Office. Steptoe was contracted by the government during Fortuño’s tenure to design the Law 154 tax strategy, which levied an excise tax on multinational firms operating on the island and provided the financing for the tax reform, the former governor’s signature achievement while in office.

Fortuño said he would have been barred from working with Steptoe «if he had an active participation in the granting of government contracts or supervision of their work.

«In the case of Steptoe and Johnson, Steptoe had been contracted by some government agencies, but I had nothing to do with their contracting,» Fortuño said.

Steptoe’s tax initiative for Puerto Rico has been hailed as a success. It deftly avoided existing tax-exemption decrees with local manufacturers, while levying an income tax on related firms that benefit from their production.

Because the tax is placed on the offshore, U.S. or foreign corporation, the Puerto Rico government isn’t violating its tax-exemption decrees with the local manufacturer, and the tax should be able to be used as a dollar-for-dollar tax credit against federal taxes owed.

Moreover, the tax is easy to enforce because the local manufacturer must collect the tax at the moment of sale from the affiliate and remit it to the Puerto Rico Treasury Department.

Moreover, predictions of legal fights over the tax haven’t come to pass.

Steptoe & Johnson is an international law firm widely recognized for vigorous advocacy in complex litigation and arbitration, successful representation of clients before governmental agencies, and creative and practical advice in guiding business transactions. It practices in the following areas: antitrust & competition, corporate, securities & finance, energy, environment & natural resources, labor/management relations, government affairs & public policy, immigration, insurance & reinsurance, intellectual property, international arbitration, international regulation & compliance, international trade & investment, litigation, white-collar criminal defense, national & homeland security, property, tax, telecom, Internet & media, and transportation.

Fortuño ya tiene nuevo trabajo

EL VOCERO / Archivo