KPMG Manager Drops Lawsuit Over Shelters

A senior manager of KPMG, which is under U.S. government scrutiny over tax shelters it has marketed to corporate clients, dropped a lawsuit that claimed he was punished for refusing to endorse illegal tax-avoidance strategies, court papers said.

Michael Hamersley’s attorney last week filed papers, with no explanation, in Los Angeles County Superior Court to drop the 8-month-old suit against KPMG. The attorney, Nathan Goldberg, didn’t immediately return a call for comment. New York-based KPMG has denied Hamersley’s allegations.

Hamersley claimed he was placed on administrative leave after he refused to sign off on allegedly illegal tax shelters sold to an audit client that involved millions in fees.

Hamersley, a senior manager in KPMG’s Los Angeles tax practice, in October testified before a congressional committee that was considering legislation to outlaw specific tax-avoidance transactions.

From Bloomberg News