Tuesday, July 17, 2007

Largest Tax Fraud Case Ever Thrown Out

Earlier today a federal judge tossed out indictments against 13 former KPMG executives yesterday in the largest criminal tax-fraud case in United States history. The case was brought up to determine if the former KPMG executives intentionally helped clients avoid over $2.5 billion in federal tax liabilities through use of unlawful tax shelters. Judge Lewis A. Kaplan cited "intolerable" prosecutorial abuses that deprived the defendants of their constitutional right to a defense. Federal prosecutors pressured KPMG to stop paying the legal bills of their employees who refused to cooperate with the investigation. "There are limits on the permissible actions of even the best prosecutors," Judge Kaplan claimed. "The responsibility for the dismissal of this indictment . . . lies with the government." However, prosecutors are already considering their options for an appeal.

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