Ex-KPMG Tax Partner Seeks Release on Bail

0

A former KPMG tax partner who has been arrested and indicted on charges of tax evasion has asked a federal judge to release him on $10 million bail.


David Greenberg, who worked at the Los Angeles office of KPMG from 1999 to 2003, is one of 17 former KPMG executives indicted in recent weeks as part of an investigation into the firm’s tax-shelter packages. He was a member of one of the groups that sold the tax shelters.


Greenberg is the only indicted KPMG partner who has been arrested.


Yesterday, a federal prosecutor asked a Los Angeles federal judge to deny bail for Greenberg, who has been in jail since Oct. 17. The prosecutor said Greenberg 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 previous news reports. Prosecutors consider him a flight risk.


The bail hearing was set to resume Thursday afternoon in downtown Los Angeles. John Nassikas, Greenberg’s lawyer, did not return a call to the Business Journal.


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.

No posts to display