A federal prosecutor asked a Los Angeles judge to deny bail to a former KPMG partner indicted in the government's tax shelter fraud case, calling him a flight risk.
David Greenberg, 46, was one of 10 former KPMG executives indicted Monday in connection with the design and marketing of alleged phony tax shelters, and was the only defendant to be arrested by authorities. Greenberg has been accused of falsifying documents to hide his involvement in questionable tax shelters, coaching a co-conspirator to lie to investigators and misleading investigators about whether he had surrendered all his passports.
U.S. District Judge Andrew J. Wistrich said that he was inclined to set bail, but did not have enough information to determine an amount. Greenberg has been kept in custody and the defense will provide more details on the defendant's finances. A prosecutor from the U.S. Attorney's Office said that the government's move was based on statements from an un-indicted co-conspirator in the case.
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Another 10 people were indicted in the case this week following the Aug. 29 indictment of eight other former KPMG executives and one outside attorney. The 18 other individuals are expected to appear in New York on their own recognizance for arraignment next week.
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