Last of KPMG defendants found guilty

A federal jury yesterday convicted two former KPMG LLP executives and a tax lawyer of tax-evasion charges in one of the largest tax-shelter cases of all time, according to published reports.
DEC 18, 2008
By  Bloomberg
A federal jury yesterday convicted two former KPMG LLP executives and a tax lawyer of tax-evasion charges in one of the largest tax-shelter cases of all time, according to published reports. Found guilty were former KPMG tax partner Robert Pfaff and former senior tax manager John Larson, along with Raymond J. Ruble, a former tax lawyer at Brown & Wood, which is now known as Sidley Austin LLP of Chicago. Prosecutors spent more than three years making a case against an original group of 19 defendants — including 17 from KPMG — regarding the creation and sale of aggressive tax shelters for wealthy Americans that allowed them to evade hundreds of millions of dollars in taxes. Mr. Larson and Mr. Pfaff were convicted on 12 counts of tax evasion. Mr. Ruble was found guilty on 10 counts of tax evasion related to clients who evaded taxes through a vehicle known as a BLIPS tax shelter. Each of the three men was acquitted of conspiracy and one count of tax evasion. Mr. Ruble also was found not guilty on two counts of tax evasion. David Greenberg, a former tax partner at KPMG, was acquitted on the five counts of tax evasion that he faced. A conspiracy charge was dismissed against Mr. Greenberg earlier this month. The defendants are scheduled to be sentenced March 20, with each facing up to five years for each count. KPMG settled with the government for $456 million in 2005. The firm is based in New York.

Latest News

Amid festering trade tensions, Grantham's GMO launches China-dodging ETF
Amid festering trade tensions, Grantham's GMO launches China-dodging ETF

Notwithstanding a recent tech-driven rebound in Chinese markets, five- and 10-year lookbacks suggest dropping the emerging-market giant is still the winning strategy.

Finra sanctions smoothie-throwing broker over alleged cash reporting failures
Finra sanctions smoothie-throwing broker over alleged cash reporting failures

But the Finra panel's decision against James Iannazzo was not unanimous.

Student debt has a chilling effect on employees' retirement planning, confirms research
Student debt has a chilling effect on employees' retirement planning, confirms research

A new study highlights how debt-saddled public and private workers are forced to focus on shorter-term investments and immediate financial concerns.

Decade of RIA M&A explosion shows no slowdown: Fidelity
Decade of RIA M&A explosion shows no slowdown: Fidelity

There's been an emergence of buyers, backed with PE dollars, making repeated acquisitions.

Spotlighting the Fastest-Growing Fee-Only RIAs in the USA
Spotlighting the Fastest-Growing Fee-Only RIAs in the USA

Discover which fee-only RIAs had standout performances in 2024

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.