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Oct 13, 2008 1:50 pm US/Eastern
Trial Set To Begin In NY Tax Shelter Case
NEW YORK (AP) ―
Federal prosecutors say they'll be talking about billions of dollars of fraud at the start of a long-awaited trial linked to the accounting giant KPMG.
Jury selection is set to begin Tuesday in U.S. District Court in Manhattan. Three former employees and a consultant remain in a case that once had 19 defendants. Judge Lewis Kaplan dismissed charges against most defendants after finding that prosecutors had unfairly tried to block their legal fees.
Prosecutors say in court papers that the remaining defendants generated billions of dollars in phony tax losses. They say the scam benefited more than 600 wealthy clients.
Defense lawyers say their clients are innocent. They say the government seeks to poison the jury with allegations of tax evasion far beyond anything it can prove.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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