For those who have been following the continuing saga of KPMG and the government investigation of its sales of abusive tax shelters, you know that the firm is working feverishly to avoid a criminal indictment, going so far as to issue a public statement blaming an array of former tax partners for engaging in illegal conduct.  Some current and former members of the firm, including former board members, recently fired off an anonymous eleven-page memorandum detailing what they view as the firm’s failure to protect its partners and inconsistent treatment of favored members of senior management.  The memorandum, available below, goes into excruciating detail that only the most serious KPMG follower will be able to follow — it is purportedly written by accountants, so it’s hard to describe it as scintillating — but the tone is one of extreme bitterness.  Even if the firm avoids a criminal prosecution by entering into a deferred prosecution agreement (and paying a hefty sum for that privilege, no doubt), will it be able to survive as much more than a shell of its former self?  (ph — thanks to a tax lawyer friend for passing this along)

Download kpmg_anonymous_memo.pdf