Ex-chief at KPMG charged with fraud

August 30, 2005

Ex-chief at KPMG charged with fraud
By James Doran, Wall Street Correspondent



JEFFREY STEIN, the former deputy chairman of KPMG, was named yesterday as one of nine men facing criminal charges for allegedly designing illegal tax shelters to help clients of the accountancy firm to avoid paying more than $1 billion (£560 million) of tax.

Mr Stein has not responded to the charges, which were revealed in a court in New York, but it is understood that he intends to deny allegations that he conspired with seven other former KPMG executives and a lawyer to defraud the US Internal Revenue Service of $1.4 billion.

The eight other defendants are also expected vigorously to defend the charges, sources said last night.

The indictment of Mr Stein and his co-accused was part of a wider deal between KPMG and federal prosecutors known as a deferred prosecution. Under the deal, the accountancy firm agreed to pay a fine of $456 million and to be monitored by a court- appointed oversight team for the next 16 months.

http://www.timesonline.co.uk/newspaper/0,,171-1755893,00.html

what KPMG stands for. I'm sure it is the result of a merger of 2 or more well known companies but I'm just not up to speed.

oh wait - thats EPMD....





wow - these guys mean business!

?

The Knight part sounds a little familiar.

http://www.kpmg.com/about/ourhistory.asp

K stands for Klynveld
Piet Klynveld founded the accounting firm Klynveld Kraayenhof & Co. in Amsterdam, in 1917.

P is for Peat
William Barclay Peat founded the accounting firm William Barclay Peat & Co. in London, in 1870.

M stands for Marwick
James Marwick founded the accounting firm Marwick, Mitchell & Co. with Roger Mitchell, in New York City, in 1897.

G is for Goerdeler
Dr. Reinhard Goerdeler was the first President of the International Federation of Accountants, and was for several years the Chairman of KMG. He is credited with laying many of the foundations for the Klynveld Main Goerdeler merger.