3 Convicted in KPMG Tax Shelter Case

Submitted by Cara Patterson on Thu, 12/18/2008 - 17:24

A federal jury on Wednesday found Robert Pfaff and John Larson, two former employees at the accounting firm KPMG, and a former top tax lawyer, Raymond J. Ruble, guilty in a tax-shelter trial once billed as the largest ever. A third former KPMG partner, David Greenberg, was acquitted of the charges, the New York Times reported.

Prosecutors had alleged the one-time KPMG executives and Ruble engaged in a scheme to help some of the nation's wealthiest individuals avoid paying hundreds of millions of dollars in taxes through fraudulent tax shelters, the Wall Street Journal reported.

The four shelters at issue were known as Blips, or bond linked issue premium structure; Flips, or foreign leveraged investment program; OPIS, or offshore portfolio investment strategy and a variant of Flips; and SOS, or short option strategies.
 

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