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Corporations and securities brief ~ KPMG apologizes for illegal tax shelters

[JURIST] Leading Thursday's securities and corporations law news, "Big Four" accounting firm KPMG [corporate website] has apologized for creating illegal tax shelters. The firm vowed to clean up its practices and culture. The apology is part of an effort by KPMG to avoid the type of criminal prosecution that seriously damaged rival firm Arthur Andersen. Read the KMPG press release. Reuters has more.

In other corporations and securities law news...

  • The SEC [official website] has subpoenaed Philadelphia Consolidated Holding Co. [corporate website] for information on its dealings with Berkshire Hathaway [corporate website]. The subpoena asks for information about reinsurance products, where one insurance company insures another. The subpoena is part of an ongoing government probe into the reinsurance industry. Philadelphia Consolidated has issued a press release. AP has more.

  • BJ’s Wholesale [corporate website] has settled with the FTC [official website] over charges that the company negligently allowed thieves access to customers financial information. The thieves gained access to the credit and debit card numbers for thousands of BJ’s customers, spending millions of dollars. Read the FTC press release. Reuters has more.

  • Yoshiaki Tsutsumi [Wikipedia profile], the Japanese railroad and resort tycoon who was once considered the world’s wealthiest man, pleaded guilty Thursday to corporate fraud in Tokyo District Court. Tsutsumi ran Seibu Railway [Japanese corporate website] for many years. AP has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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