A federal grand jury indicted 10 more people associated with accounting firm KPMG yesterday in a case alleging that bogus tax shelters the...
NEW YORK — A federal grand jury indicted 10 more people associated with accounting firm KPMG yesterday in a case alleging that bogus tax shelters the company sold helped rich clients avoid billions of dollars in taxes.
KPMG’s former chief financial officer, Richard Rosenthal, was among the latest group under indictment on charges of conspiracy to defraud the Internal Revenue Service (IRS) and tax evasion.
Prosecutor Justin Weddle told U.S. District Judge Lewis Kaplan that the superseding indictment brought the charges against nine men and a woman, raising to 19 the number facing trial.
Overall, those charged include the former deputy chairman of KPMG, several former heads of KPMG’s tax practice, the former head of KPMG’s Department of Professional Practice, a former KPMG associated general counsel, a former tax partner in the Manhattan office of a prominent national law firm and other former KPMG tax partners.
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“The development and promotion of abusive tax shelters had a corrupting effect on the legal and accounting professions,” IRS Commissioner Mark Everson said in a statement. “Tax professionals should help people pay what they owe — not more, not less.”
A lawyer for Rosenthal did not immediately return a call.
Nine defendants charged in the case several weeks ago have already been freed on bonds ranging from $300,000 to $3.5 million.
The revised indictment includes 39 counts of tax evasion and two obstruction-of-justice counts.
Weddle said all the defendants were expected to voluntarily surrender except for one person who faced an arrest warrant. The new defendants were scheduled to be arraigned on the charges next Monday.
The Department of Justice has described the case as the largest criminal tax case ever filed. It said the KPMG scam allowed the firm’s clients to avoid paying $2.5 billion in taxes.