Second Circuit Affirms Dismissal of Indictment Against Former KPMG Partners Where Government Caused KPMG Not to Pay Defendants’ Legal Fees

September 02, 2008
Rejecting aggressive tactics by federal prosecutors in white collar criminal cases, the United States Court of Appeals for the Second Circuit affirmed on August 28, 2008, an order by U.S. District Court Judge Lewis A. Kaplan dismissing an indictment against thirteen former partners of the accounting firm KPMG, LLP. The case has been described by the U.S. Attorney’s Office for the Southern District of New York as the “largest criminal tax fraud prosecution ever.” This update will examine the court’s decision and its implications.