Ernst & Young to Pay $123 Million to End Tax-Fraud Probe
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Ernst & Young LLP will pay $123 million to resolve a U.S. tax-fraud probe as part of a non-prosecution agreement, according to a statement by the Manhattan U.S. Attorney’s Office.
The accounting firm “admitted wrongful conduct” by its partners and employees in connection with four tax shelters from 1999 to 2004, according to yesterday’s statement. About 200 Ernst & Young clients used the shelters to try to avoid more than $2 billion in taxes, prosecutors said.