A U.S. appeals court told the judge overseeing the KPMG tax shelter cause that if he believes federal prosecutors violated the rights of former KPMG employees he should toss the entire case.

Judge Lewis Kaplan, who is overseeing the case in New York, has been outspoken in his belief that prosecutors may have crossed the line in pressuring KPMG to stop paying the legal fees of the 17 former employees of the Big Four firm who are facing conspiracy and tax evasion charges over the sale of legally questionable tax shelters.

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