A former KPMG partner in L.A. who was indicted on federal tax evasion and conspiracy charges was denied bail and is being transferred to a New York jail.


David Greenberg, who worked at the Los Angeles office of KPMG from 1999 to 2003, is one of 17 former KPMG executives indicted as part of an investigation into the firm's tax-shelter packages.


Greenberg, the only indicted KPMG partner who was arrested, has been in jail since Oct. 17. He asked a Los Angeles federal judge on Thursday to release him on $10 million bail, backed by $8 million in personal property. Prosecutors considered him a flight risk.


After denying bail on Thursday, U.S. Magistrate Judge Andrew Wistrich ordered U.S. Marshals to transport Greenberg by bus to a New York jail.


"He may be on the way now, or they may start him on Monday," said Thom Mrozek, spokesman of the U.S. District Court, Central District of California.
Mrozek said.


Greenberg's lawyer, John Nassikas, did not return a call.


Earlier this week, a federal prosecutor asked Wistrich to deny bail for Greenberg, 46, claiming that the defendant had told a witness that, if he were indicted, he would "take $15 (million) to $20 million that I have in an account in my ex-wife's name that no one can touch, and I'm taking off," according to news reports.


Two other local KPMG partners who have been indicted and two other defendants are scheduled to appear in court on Oct. 24. It was unclear whether Greenberg or his lawyer would be present at that hearing.


KPMG has admitted that its tax shelters generated $11.2 billion in losses and relieved hundreds of wealthy clients from $2.5 billion in taxes. In August, the firm paid $456 million to settle claims by federal prosecutors.

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