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Thompson Memorandum on Fees Found Unconstitutional

By ALM Staff | Law Journal Newsletters |
July 31, 2006

Strong words: KPMG refused to pay its employees' legal fees because prosecutors held a 'gun to its head,' and the government thus 'violated the Constitution it is sworn to defend.'

This statement from U.S District Judge Lewis A. Kaplan in the KPMG tax shelter case has shaken the foundations of corporate prosecutorial policy. United States v. Stein et al., 2006 WL 1735260, (S.D.N.Y. June 26, 2006).

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