Alert Blawgletter readers will recall that, back in February, we wrote about a Ninth Circuit case involving a tax shelter scheme with an alluring moniker — "Bond-Linked Income Premium Structure" or BLIPS. The court reinstated claims by a KPMG client for taking his $1 million to shelter $18 million in a sham, or sham-ish, fashion.
We’ve since reported developments with the feds’ criminal prosecution against ex-KPMG partners, employees, and aiders and abetters. It hasn’t gone so well — what with the Second Circuit overturning an order that required KPMG to pay its former folks’ legal expenses and the district court on remand dismissing charges against most of them as an alternative remedy.
The prosecutors got some good news last week. They announced that one of the aiders and abetters, David Amir Makov, pleaded guilty and agreed to cooperate. See Lynnley Brown’s NYT article. KPMG cut a deal with the feds in 2005.