A judge denied bail Monday to a former KPMG executive accused of helping engineer a tax shelter fraud for rich people that prosecutors say was the largest case of its kind in U.S. history.
U.S. District Judge Lewis A. Kaplan said he had concluded that David Greenberg had expressed an intention to flee in the event of an indictment and to finance his flight with assets he had placed in accounts in the name of his former wife and his father.
Kaplan also said he could not be sure that Greenberg would not tamper with witnesses or attempt to obstruct justice if he were released on bail pending trial, especially after prosecutors suggested that Greenberg has already attempted to do so.
Greenberg is among 19 people charged in an indictment described by the government in U.S. District Court in Manhattan as the largest criminal tax case in U.S. history. His lawyer has disputed the allegations.
The indictment alleges that 17 former partners and managers at the prominent accounting firm KPMG LLP, one former partner at a prominent law firm and one other defendant conspired to defraud the Internal Revenue Service of more than $2 billion by filing false income tax returns and by fraudulently concealing the tax shelters from the IRS.