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Latest Business News

KPMG Judge Questions Legality of Tactics

Wednesday, May 10, 2006 6:38:05 PM
By LARRY NEUMEISTER

NEW YORK (AP) - A federal judge Wednesday questioned the constitutionality of a government policy that defense lawyers say pressures companies like the KPMG accounting firm to stop paying legal fees for those who do not cooperate with prosecutors.

U.S. District Judge Lewis A. Kaplan said he might consider forcing the accounting company to pay legal fees for those accused in what the government has described as the largest criminal tax case ever, a fraud that helped the wealthy escape $2.5 billion in U.S. taxes.

Kaplan convened the hearing to determine whether any rights were violated by the 2004 probe that led to criminal charges against former partners and managers at the company.


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