According to Reuters and the AP, two current E&Y partners and two former partners have been indicted in federal court for tax shelters.
In an indictment filed in U.S. district court in Manhattan, prosecutors allege the defendants at the “Big Four” accounting firm created and marketed tax shelters from 1998 through 2004 based on false and fraudulent scenarios to allow wealthy individuals to reduce the federal taxes they would have to pay.
U.S. Attorney Michael Garcia said in a statement that the indictment targets “tax professionals whose deceit costs this country untold millions in tax revenues.”
Both articles noted that E&Y is cooperating with the government investigation and that the group in question has been dissolved. Little was given on the scope of the shelters or how they worked, other than that they were marketed to individuals with taxable incomes of $10 to $20 million. However, the Reuters article said that three of the four partners used a shelter for their personal taxes and, along with eight other E&Y partners, evaded $3.7 million in taxes.
Regardless, this doesn’t seem to of the same scale as the infamous KPMG shelter case.