Judge: Worker Not Covered By Attorney-Client Privilege

Law360, New York (December 6, 2006, 12:00 AM EST) -- The judge overseeing the tax fraud case against 16 former employees of accounting giant KPMG LLP ruled Monday that an employee cannot assert attorney-client privilege in connection with communications between the employee and the employer’s legal counsel.

Carol Warley, a former partner at KPMG, was questioned while still working for KPMG by lawyers the accounting firm retained during an Internal Revenue Service investigation into KPMG’s tax shelter activities. Faced with the threat of an indictment, KPMG later waived its attorney-client privilege and turned over documents which...
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