Criminal Justice

Plea Deal in Tax Shelter Case


An investment adviser accused in an illegal tax shelter case involving KPMG has reached an agreement to plead guilty.

David Amir Makov could enter a guilty plea as early as today, the New York Times reports. He worked for an investment firm, Presidio Advisory Services. Presidio, formed by two former KPMG employees, sold tax shelters known as Blips.

Makov is expected to cooperate in exchange for a reduced sentence, the newspaper says.

The government originally charged 19 defendants in the case. A federal judge dismissed charges against 13 defendants last month, saying the government violated their constitutional rights by pressuring KPMG to cut off their legal fees. Former KPMG partner David Rivkin pleaded guilty more than a year ago.

The Times says the plea “may help prosecutors get their case back on track and focused on tax shelters, rather than the constitutional rights of white-collar defendants.”

The four remaining defendants are scheduled to go on trial in October. Among the group is R.J. Ruble, a former law partner at Sidley Austin, reports the Wall Street Journal.

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