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November 15, 2005

A federal judge denied bail yesterday to one of the indicted ex-KPMG partners. The judge ruled David Greenberg was a flight risk and likely to tamper with witnesses.

Kaplan said on Monday that he considered nonviolent witness tampering and obstruction a danger to the community and grounds to deny bail.

The judge noted that the defendant had allegedly told a coconspirator that if he were indicted, he would take about $16 million to $20 million he had put in his ex-wife's name and take off.

Kaplan said that Greenberg's April 2004 formation of a limited liability company in the name of his former wife and his father corroborated that claim. The executive put between $11 million and $13 million into the company's accounts.

After analyzing the signatures on papers forming the company, Kaplan concluded that it was "quite unlikely" that Laura Greenberg, the ex-wife, had signed them at all.

The government has maintained that the former wife was unaware of the formation of the asset-holding company and learned of its existence by mistake through a mass mailing. The judge said the circumstances suggest Greenberg formed the company without his former wife's knowledge and kept its existence from her.

Serious business, indeed.

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But, Oh, to be that lucky ex-wife!!
I wonder if this is better than what she got in the divorce settlement?

Mmm... Hadn't thought of that! Bad luck for the "pregnant fiancee," though.

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