Law firm sues former KPMG vice chairman in tax fraud case

New York tax law boutique Kostelanetz & Fink is seeking more than $1.3 million in fees from Richard H. Smith, a former KPMG vice chairman and partner. In the largest criminal tax case ever filed, KPMG had admitted that it engaged in a fraud that generated at least $11 billion dollars in phony tax losses which, according to court papers, cost the United States at least $2.5 billion dollars in evaded taxes. In 2008, former KPMG tax partner Robert Pfaff and former senior tax manager John Larson were convicted by a federal jury on several counts for evading taxes, but a judge dismissed charges against 13 other former KPMG executives, including Smith. Kostelanetz & Fink claims KPMG had payed to Smith most of the attorney fees billed by the law firm, but Smith has refused to pay his outstanding account.

Law firm sues former KPMG vice chairman in tax fraud case reuters.com Mon, Aug 17, 2009