TaxAdministrationEx-KPMG staff found guilty in US tax shelter case

Ex-KPMG staff found guilty in US tax shelter case

A New York federal jury returns a mixed verdict for ex-KMPG executives in tax shelter case

After a two-month trial against three former KPMG executives on charges for
helping wealthy clients evade millions of dollars in tax, a New York federal
jury returned a mixed verdict yesterday, convicting two and acquitting one of
the trio.

Convicted of tax evasion were Robert Pfaff, a partner, and John Larson, a
senior manager, together with lawyer Raymond Ruble, a former partner at Brown
& Wood. Winning acquittal was tax partner David Greenberg,
Bloomberg
reports.

The case, once touted as the biggest tax-shelter prosecution in US history,
has shrunk since 2005, from initially accusing 17 ex-KPMG executives, including
former KMPG deputy chairman Jeffrey Stein, and two others of helping wealthy
Americans evade $2bn in taxes.

The case suffered a major setback in January 2007 when the district attourney
dismissed charges against all but four defendants for violating the defendants’
right to counsel by pressuring KPMG to withhold their legal fees, a ruling which
was later upheld on appeal. Charges against New York-based KPMG were dismissed
in January 2007 after it paid a $456m fine.

Further reading:

Ex-KPMG defendants walk away from tax-shelter case

Ex-KPMG execs seeks dismissal of tax shelter charges

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