Securities: Tax Fraud Charges for Four Ernst & Young Partners

U.S. prosecutors charged four current and past Ernst & Young accountants with promoting fraudulent tax shelters. Prosecutors did not bring criminal charges against the accounting firm; however, the firm has been under criminal investigation since at least mid-2004.

Tax-Fraud Charges for 4 From Ernst & Young

Martin Nissenbaum, Richard Shapiro, Robert Coplan, and Brian Vaughn have been indicted on charges for tax evasion, conspiracy to defraud the Internal Revenue Service, making false statements to the IRS and obstructing the IRS's lawful functioning. Prosecutors say the men developed, marketed, and sold tax-shelter transactions based on "false and fraudulent factual scenarios" for six years.