NY appeals court tosses 2 convictions in tax case

November 29, 2012 - 1:33 PM

NEW YORK (AP) — A New York federal appeals court has reversed the convictions of two former Ernst & Young partners. They were accused of defrauding the United States by selling illegal tax shelters to wealthy individuals.

The 2nd U.S. Circuit Court of Appeals decided Thursday there was insufficient evidence to convict tax attorneys Martin Nissenbaum and Richard Shapiro.

One of three judges dissented, saying the men were part of a tax fraud conspiracy.

The men had been convicted at a 2010 trial.

The court upheld the convictions of another tax attorney and an accountant.

The prosecution stemmed from an investigation begun after Ernst & Young formed a new group in 1998 to design tax shelters. People looking to shelter at least $20 million were the target market.