Originally published July 3 2005
Top global accountancy group faces criminal charges over tax sales
by Mike Adams, the Health Ranger, NaturalNews Editor
KPMG, one of four top accountancy groups, is in "high wire" negotiations with Federal prosecutors, who accuse the firm of obstructing justice and selling abusive tax shelters.
KPMG in the United States is locked in "high-wire" negotiations with Federal prosecutors, who have built a case to show that the global accountancy giant obstructed justice and sold "abusive" tax shelters, it is reported today.
In a move that could decide the fate of KPMG, one of the top four global accountancy groups, American prosecutors are deciding whether to indict the firm, which would involve criminal charges, according to the Wall Street Journal.
The threat of these criminal charges could persuade KPMG to pay "substantial financial penalties" in settlement, the Journal wrote.
In April, KPMG paid $22.5 million to the US Securities and Exchange Commission, the United States markets regulator, to settle charges that it allowed office equipment maker Xerox to manipulate its accounts.
As part of its agreement with the regulator, KPMG agreed to eight specific reforms, including establishing a channel of communication for "whistleblowers" who might expose any alleged wrongdoing at the group.
KPMG disclosed two years ago that it was under investigation by the attorney's office for the southern district of New York for the alleged aggressive marketing of tax shelters to its wealthy clients during the 1990s.
In a statement issued from New York, KPMG said today: "KPMG takes full responsibility for the unlawful conduct by former KPMG partners during that period, and we deeply regret that it occurred.
"We take this matter very seriously and seek to resolve it fairly and expeditiously."
It was also reported today that KPMG also faces possible criminal charges for allegedly misleading Revenue investigators and concealing evidence.
KPMG has argued that even an agreement to defer prosecution that would keep the group out of the courts would nevertheless do its reputation serious damage.
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