Monday, August 29, 2005

Nine Indicted for Conspiracy Related to KPMG Tax Shelters

An AP report (here) states that a grand jury in the Southern District of New York indicted nine individuals on a conspiracy charge related to the sale of tax shelters by KPMG.  Eight of the defendants are former KPMG partners, including the former deputy chairman of the firm, Jeffrey Stein, and the ninth defendant is a lawyer with an outside law firm who assisted in the sales.  A Wall Street Journal story (here) states that five of the defendants are lawyers.  As expected, KPMG entered into a deferred prosecution agreement with the government that calls for a $456 million fine.  The agreement lasts through Dec. 31, 2006, and requires KPMG to abide by restrictions on its tax practice. Once the individual indictment is available, I will post it and try to give a bit more information on the charge(s) and defendants. (ph)

                                                                                                                  

UPDATE: KPMG's statement regarding the deferred prosecution agreement is available here:

Download kpmg_llp_media_statement.pdf

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/08/nine_indicted_f.html

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