E&Y sued over failed tax shelters

E&Y sued over failed tax shelters

Florida couple claim they lost out through firm's strategy on personal investment companies

Former clients are suing the US arm of Big Four firm Ernst & Young after
claiming it defrauded them and other tax payers of millions of dollars through
failed tax shelters.

Florida couple Rocco and Mary Abessinio claim to have owed more that $40m
(£23m) from pursuing a false tax strategy, costing more that $5.9m in fees,
according to Reuters.

The complaint accuses E&Y of marketing a tax strategy, involving the
creation of a ‘personal investment company’, or PICO, that had ‘no legitimate
purpose other than as a vehicle for tax avoidance.’

The complaint is seeking class-action status as it argues the firm sold at
least 90 PICO products.

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