Government Throws in Towel in KPMG Tax Shelter Case

From the Wall Street Journal's Law Blog:

It’s over. The Justice Department declined to ask the Supreme Court to review the 2nd Circuit’s ruling in U.S. v Stein. That’s the case, once billed by the government as the largest tax-fraud prosecution in history, in which U.S. District Judge Lewis Kaplan of Manhattan dismissed the indictments of 13 former KPMG executives because prosecutors violated their rights. The violation? Pressuring KPMG not to pay the defendants’ legal fees.

More than three months ago, the 2nd Circuit affirmed Kaplan’s decision. The deadline to file a petition for writ of certiorari with The Supremes was last week.

See also New York Times:  Prosecutors Pass on Chance to Revive Tax Shelter Case, by Lynnley Browning.  Prior TaxProf Blog coverage:

• More KPMG Tax Shelter Coverage (6/23/05)
• Ten More Indicted in KPMG Tax Shelter Probe (10/17/05)
• HVB Cops Plea in KPMG Tax Shelter Case (2/15/06)
• NY Times:  Deutsche Bank Seeks to Settle KPMG Tax Shelter Charges (2/24/06)
• KPMG Tax Shelter News (3/6/06)
• Surprise Guilty Plea in KPMG Tax Shelter Case (3/28/06)
• District Court Slams Government in KPMG Tax Shelter Case (6/27/06)
• More on Yesterday's KPMG Tax Shelter Decision (6/28/06)
• Ribstein on KPMG Decision (7/6/06)
• Judge Delays KPMG Tax Shelter Trial (7/20/06)
• District Court Denies KPMG's Motion to Dismiss Attorneys' Fee Lawsuit (9/8/06)
• KPMG Tax Shelter Case (10/5/06)
• Second Circuit Oral Argument in KPMG Tax Shelter Case (11/22/06)
• Latest KPMG Opinion (12/7/06)
• NY Times:  Fallout from KPMG Tax Shelter Case (12/16/06)
• District Judge Sets September Trial Date in KPMG Tax Shelter Case (12/20/06)
• Judge Kaplan Defends His Actions in KPMG Tax Shelter Case to Second Circuit (1/10/07)
• Second Circuit Reverses District Court in KPMG Tax Shelter Case (5/23/07)
• WSJ:  Judge Preparing to Dismiss KPMG Case? (5/31/07)
• More on Hearing on Dismissal of KPMG Tax Shelter Case (6/1/07)
• KPMG Tax Shelter Case Update (6/12/07)
• District Court Slams Government in KPMG Tax Shelter Case (6/27/07)
• Latest Twist in KPMG Tax Shelter Case (7/5/07)
• Lawyers for KPMG Tax Shelter Defendants Cannot Leave (7/25/07)
• District Court Denies Five KPMG Tax Shelter Defendants' Motion for Continuance (8/6/07)
• Other Five KPMG Tax Shelter Defendants Seek Trial Delay (8/6/07)
• Two Prominent Attorneys Subpoenaed in KPMG Tax Shelter Case (8/21/07)
• KPMG Tax Shelter Defendant Pleads Guilty (9/11/07)
• WSJ on KPMG Tax Shelter Trial (10/12/07)
• KPMG Tax Shelter Prosecutors Take Appeal to Second Circuit (3/26/08)
• Second Circuit Affirms Dismissal of indictments Against 13 KPMG Tax Shelter Defendants (8/28/08)

Update:  Editorial in Wednesday's Wall Street Journal:  Tax Fraud Finale; Justice Gives Up Its Misbegotten Tax Case.