Former Sprint Executives Sue U.S. for Allegedly Hiding EY Probe
Former Sprint Corp chief executive William Esrey and former chief operating officer Ronald LeMay sued the United States government for allegedly concealing its investigation into accounting firm Ernst & Young LLP’s promotion of tax shelters sold to the executives, Reuters is reporting.
The suit involves a 2002 Internal Revenue Service investigation into Ernst & Young’s promotion of tax shelters to its clients, including the two executives and settled the audit with EY in July 2003, without informing the executives, the lawsuit said.
The plaintiffs alleged that the IRS helped EY conceal the details of investigation from them, which meant they could not defend themselves against allegations by Sprint about their participation in the EY-promoted tax shelter schemes, Reuters reports.
