Four current and former tax partners at Ernst & Young have been charged by a US grand jury with tax fraud conspiracy.
The four are alleged to have marketed fraudulent tax shelters to wealthy clients who would otherwise have owed the IRS more than $10m (₤5m) apiece.
The four charged are former partners Robert Coplan and Brian Vaughn, and current partner Martin Nissenbaum and Richard Shapiro, who are on administrative leave.
They all worked in a group set up by E&Y in 1998 to develop and sell tax shelters for the rich, known as Value Ideas Produce Extraordinary Results, or Viper.
All are expected to plead not guilty
E&Y said in a statement: ‘The individuals who were indicted . . . were part of a small group within the firm, disbanded years ago . . . Ernst & Young has voluntarily made many changes and enhancements to our tax practice.'
Further reading:
US Treasury secretary against collecting more tax
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