LAWFUEL – The Law News Wire – Ernst & Young is the latest of the Big four accountancy firms to be caught by massive US criminal investigation into tax shelters for the wealthy. Now four current and former partners have been indicted.
The charges are the latest in a long-running criminal investigation by the Inland Revenue Service and the US Department of Justice which has already seen rival big four firm KPMG having to settle for $456 million and one of its former partners charged with fraud.
Two of the men charged today are still senior partners at Ernst & Young but have been placed on “administrative leave”. They are Martin Nissenbaum, national director of Ernst & Young’s personal income tax and retirement planning practice and tax partner Richard Shapiro.
The other two are former E&Y partners Robert Coplan, a lawyer from Texas who previously served in the IRS’ Legislation and Regulations Division and Brian Vaughn, an accountant from Louisiana.
All four worked in a group set up by the company in 1998 to develop tax shelters, according to an indictment filed in US District Court in Manhattan.