When the advice goes sour!

Remeber my May post about KPMG? We have new developments on this US case. KPMG, one of the Big Four, settled a tax-fraud case with the American government that might have threatened its very existence. The charge sheet was impressive: the government claims that between 1996 and 2002, in exchange for $128m in fees, KPMG arranged dubious tax shelters that allowed rich individuals to claim over $11 billion in phoney losses and avoid $2.5 billion in taxes. KMPG agreed to pay fines of $456m and accepted a long list of other conditions. KPMG escaped an indictment of the kind that destroyed Arthur Andersen but former partners were personally indicted for selling the tax shelters to wealthy clients. Read more here:
If you are interested in knowing more there are some of the documents the from the KPMG settlement released by the U.S. District Court for the Southern District of New York:
Deferred Prosecution Agreement
Information
Statement of Facts
Proposed Order
Resolution of KPMG Board of Directors
Indictment