Federal judges in the United States have upheld the convictions of two former

KPMG accountants and a lawyer on tax shelter issues.

However, judges threw out a $6m (£3.9m) fine against one of the defendants.

In December 2008, a New York jury convicted former US KPMG tax partner Robert

Pfaff and former US KPMG senior tax manager John Larson on 12 counts each of tax

evasion.

Prosecutors said the men represented a tax shelter known as BLIPS as a way

for clients who earned more than $20m (£13m) to eliminate capital gains or

regular income for tax purposes.

The jury also found law firm Sidley Austin LLP partner Raymond Ruble on ten

counts of tax evasion.

Larson was sentenced to ten years in prison and fined $6m (£3.9m). Pfaff

received an eight-year sentence and was fined $3m (£1.9m), while Ruble was

handed a six-year prison term.

But the appeals court ruled Larson’s fine was too high, citing a lack of jury

findings to support a fine above $3m,

Reuters

reported.

Further reading:

Trial

date set for Italy’s most serious tax fraud case