David Greenberg, a former tax partner with KPMG, faced a superseding indictment that added six more charges of tax evasion to the charges he was already facing as part of the government's case against KPMG's marketing of questionable tax shelters for clients.
The superseding indictment describes the SOS (Short Option Strategy) tax shelters offered by KPMG. The indictment said that Greenberg, with the approval of his managers, marketed the tax shelters from 1999 to 2005.
Clients would enter into offsetting foreign currency options with banks, withdraw from the transactions within a few months, but nonetheless deduct losses at more than a hundred times the actual cost on their tax returns. Greenberg also claimed SOS losses on his own tax returns, according to the indictment.
Judge Lewis Kaplan threw out charges against 13 defendants in the case in July, saying the government had been heavy-handed in demanding that KPMG not pay for the legal defense of its former employees. Greenberg was supposed to face trial in October with three remaining defendants, but the trial was delayed when Judge Kaplan found there could be a conflict of interest between another defendant and his attorney.
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