Ernst & Young Can't Escape Tax Shelter Case

Law360, New York (July 21, 2011, 3:36 PM EDT) -- A New York state judge ruled Wednesday that Ernst & Young LLP must face fraud allegations over shady tax shelters, part of a wide-ranging scandal that bankrupted an asset manager and ensnared attorneys and other individuals in criminal charges.

Ernst & Young argued that the advice it gave Bricolage Capital LLC about tax shelters, known as personal investment corporations, were opinions and not misrepresentations, but New York Supreme Court Judge Barbara R. Kapnick rejected that argument because two accounting firm principals were later convicted for their...
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