аЯрЁБс>ўџ 24ўџџџ1џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅС` јП1bjbjц‡ц‡ .„э„э1 џџџџџџЄŽŽŽŽŽŽŽтdЮ Ю Ю Ю к FЛЖђ (       :<<<<<<$qhй’`ސ     `ŽŽ  uо о о  :Ž Ž :о  :о о ŽŽо  ц @5}цСVЦЮ Ъ о :‹0Ло kд kо о 0kŽ, >X ,о „ $Ј ш   ``д    Л    FFFФ ФFFF Ђ$ЦоŽŽŽŽŽŽџџџџ March 30, 2006 05:33 PM ET Lawyer Accuses U.S. of Pressuring KPMG  HYPERLINK "http://news.moneycentral.msn.com/inc/news/providerLPredir.asp?Feed=AP"  INCLUDEPICTURE "http://news.moneycentral.msn.com/inc/images/prov_ap.gif" \* MERGEFORMATINET  All Associated Press News NEW YORK (AP) - Prosecutors pressured KPMG LLP to agree that tax shelters for the wealthy were not legal so they could charge 17 former partners and managers criminally, a lawyer told a judge Thursday, arguing that the charges be dropped. Stanley Arkin, an attorney representing one of those charged in the case brought last year, told U.S. District Judge Lewis A. Kaplan that prosecutors were unfair. "How far can the government go in exacting cooperation before the pressures or the weight you put on the cooperator becomes something that corrupts the truth?" Arkin asked. "I'm speaking of prosecutorial misconduct." He claimed KPMG insisted the tax shelters were legal for seven years before changing its position when it was faced with the possibility of a criminal prosecution that might put it out of business. "They had to change and find a new truth," he said. Assistant U.S. Attorney Justin Weddle said the government acted properly. KPMG LLP spokesman Tom Fitzgerald declined to comment. The argument by Arkin was one of a series of claims made at a pretrial hearing by the defense. The judge did not immediately rule. KPMG LLP already has admitted helping wealthy clients evade billions of dollars in capital-gains and income taxes by developing and marketing the tax shelters and concealing them from the IRS. It has paid a $456 million fine, including $128 million in forfeited fees from sales of the shelters. Its cooperation has allowed the giant accounting firm to continue its business with the expectation that it will not be charged criminally. Arkin said the government had pressured KPMG to insist that its employees not say anything inconsistent with what the company has said regarding the tax shelters. He said defense lawyers have found KPMG employees fearful to tell the truth and testify that the company insisted for years that the tax shelters were legal. Weddle told the judge that the government has not pressured the company to stop employees from telling the truth. Defense lawyers also claimed that the government had pressured the company not to pay legal fees for the defendants even though it was the company's practice to do so. The judge seemed sympathetic to the argument. "Frankly, I'm very bothered by it," the judge said. "I think it's shameful, and it may be worse than that." He said it seemed the government's actions might amount to "depriving people of counsel or impairing their right to counsel." He obtained assurances from Weddle that the government would not punish the company for paying the legal fees of past or present employees. In what the Department of Justice has called the largest criminal tax case ever, the 17 defendants were among 19 people charged with conspiracy last year in a tax scheme that the government alleges helped affluent KPMG clients escape $2.5 billion in taxes. 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