Michael Hamersley
Encyclopedia
Michael Hamersley is a tax lawyer who, in 2003, became a corporate whistleblower
against the accounting firm KPMG's tax shelter fraud
. In 2006 he was a candidate for the U.S. Congress in California's 4th congressional district
, obtaining third place in the Democratic party primary. Hamersley worked in the Legal Division of California's Franchise Tax Board, as a member of its Abusive Tax Shelter Task Force, from 2004 through 2009.
in Washington, D.C. in 1995, where he earned a law degree. Prior to attending law school, Hamersley earned Bachelors of Business and MBA degrees from Florida International University
.
outlining KPMG's abuse of tax shelters, describing the firm's active role in developing improper tax shelters, and noting that tax professionals who participated in the abuse were rewarded by the firm. KPMG categorically denied Hamersley's allegations stating that the conclusions in his Senate Finance Committee testimony are "simply wrong."
Hamersley assisted the United States Senate Homeland Security Permanent Subcommittee on Investigations in its examination of the KPMG tax shelters, which culminated in a two day hearing
and a voluminous report detailing the nature of the KPMG's tax shelter activities. A total of nineteen senior executives of KPMG were indicted on criminal conspiracy and tax evasion charges in what the U.S. Department of Justice referred to as "the largest criminal tax case in U.S. history." KPMG subsequently admitted criminal wrongdoing relating to abusive tax shelter activities and entered into a deferred prosecution agreement with the U.S. Department of Justice pursuant to which KPMG paid $456 million in fines, restitution, and penalties. Several of KPMG's tax shelter clients also sued KPMG as a result of their tax liability exposure.
The February 2004 PBS Frontline documentary "Tax Me If You Can" about abusive tax shelters included interviews with Hamersley. His KPMG experience appears as a case study in the Legal Ethics: Law Stories textbook. See Chapter 3: Travails in Tax, KPMG and the Tax Shelter Controversy.
. In July 2009, Hamersley left the California Franchise Tax Board to head up Hamersley Partners, a tax consulting firm.
, obtaining third place in the Democratic party primary with 20.1% of the vote. He ran against Democrats Charles Brown and Lisa Rae. Brown went on to lose to then-incumbent Republican John Doolittle
.
Hamersley ran on a campaign of reform, seeking to tie Rep. Doolittle to disgraced politicians and lobbyists such as Duke Cunningham
and Jack Abramoff
, and generally accusing Doolittle of participating in "pay-to-play politics". Doolittle did not seek reelection in 2008 after his home was raided by the FBI in an alleged political corruption investigation.
Whistleblower
A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...
against the accounting firm KPMG's tax shelter fraud
KPMG tax shelter fraud
The KPMG tax shelter fraud scandal involves allegedly illegal U.S. tax shelters by KPMG that were exposed beginning in 2003. In early 2005, the United States member firm of KPMG International, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax...
. In 2006 he was a candidate for the U.S. Congress in California's 4th congressional district
California's 4th congressional district
California's 4th congressional district is a congressional district located in the U.S. state of California. It covers the northeastern corner of California along Route 395, encompassing El Dorado, Placer, Nevada, Sierra, Plumas, Lassen, and Modoc counties, as well as parts of Butte County...
, obtaining third place in the Democratic party primary. Hamersley worked in the Legal Division of California's Franchise Tax Board, as a member of its Abusive Tax Shelter Task Force, from 2004 through 2009.
Background
Hamersley graduated from Georgetown University Law CenterGeorgetown University Law Center
Georgetown University Law Center is the law school of Georgetown University, located in Washington, D.C.. Established in 1870, the Law Center offers J.D., LL.M., and S.J.D. degrees in law...
in Washington, D.C. in 1995, where he earned a law degree. Prior to attending law school, Hamersley earned Bachelors of Business and MBA degrees from Florida International University
Florida International University
Florida International University is an American public research university in metropolitan Miami, Florida, in the United States, with its main campus in University Park...
.
KPMG Whistleblower
Hamersley first worked for KPMG in 1998 in the Mergers and Acquisitions Group of its Washington National Tax office. He relocated to KPMG’s downtown Los Angeles office in March 2000. In June 2003, Hamersley filed a whistleblower lawsuit against KPMG in Los Angeles Superior Court. On October 21, 2003, Hamersely testified before the United States Senate Committee on FinanceUnited States Senate Committee on Finance
The U.S. Senate Committee on Finance is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection...
outlining KPMG's abuse of tax shelters, describing the firm's active role in developing improper tax shelters, and noting that tax professionals who participated in the abuse were rewarded by the firm. KPMG categorically denied Hamersley's allegations stating that the conclusions in his Senate Finance Committee testimony are "simply wrong."
Hamersley assisted the United States Senate Homeland Security Permanent Subcommittee on Investigations in its examination of the KPMG tax shelters, which culminated in a two day hearing
and a voluminous report detailing the nature of the KPMG's tax shelter activities. A total of nineteen senior executives of KPMG were indicted on criminal conspiracy and tax evasion charges in what the U.S. Department of Justice referred to as "the largest criminal tax case in U.S. history." KPMG subsequently admitted criminal wrongdoing relating to abusive tax shelter activities and entered into a deferred prosecution agreement with the U.S. Department of Justice pursuant to which KPMG paid $456 million in fines, restitution, and penalties. Several of KPMG's tax shelter clients also sued KPMG as a result of their tax liability exposure.
The February 2004 PBS Frontline documentary "Tax Me If You Can" about abusive tax shelters included interviews with Hamersley. His KPMG experience appears as a case study in the Legal Ethics: Law Stories textbook. See Chapter 3: Travails in Tax, KPMG and the Tax Shelter Controversy.
California Franchise Tax Board
Hamersley joined the Abusive Tax Shelter Task Force in the Legal Department of California's Franchise Tax Board in 2004. He has since lectured at tax seminars and professional ethics lectures at Georgetown University Law CenterGeorgetown University Law Center
Georgetown University Law Center is the law school of Georgetown University, located in Washington, D.C.. Established in 1870, the Law Center offers J.D., LL.M., and S.J.D. degrees in law...
. In July 2009, Hamersley left the California Franchise Tax Board to head up Hamersley Partners, a tax consulting firm.
U.S. Congressional campaign
In June 2006 he was a candidate for the U.S. Congress in California's 4th congressional districtCalifornia's 4th congressional district
California's 4th congressional district is a congressional district located in the U.S. state of California. It covers the northeastern corner of California along Route 395, encompassing El Dorado, Placer, Nevada, Sierra, Plumas, Lassen, and Modoc counties, as well as parts of Butte County...
, obtaining third place in the Democratic party primary with 20.1% of the vote. He ran against Democrats Charles Brown and Lisa Rae. Brown went on to lose to then-incumbent Republican John Doolittle
John Doolittle
John Taylor Doolittle , American politician, was a Republican member of the United States House of Representatives from 1991 to 2009, representing . In the 109th Congress, he held a leadership role as the Deputy Whip for the Republican party in the House...
.
Hamersley ran on a campaign of reform, seeking to tie Rep. Doolittle to disgraced politicians and lobbyists such as Duke Cunningham
Duke Cunningham
Randall Harold Cunningham , usually known as Randy or Duke, is United States Navy veteran, convicted felon, and former Republican member of the United States House of Representatives from California's 50th Congressional District from 1991 to 2005.Cunningham resigned from the House on November 28,...
and Jack Abramoff
Jack Abramoff
Jack Abramoff is an American former lobbyist and businessman. Convicted in 2006 of mail fraud and conspiracy, he was at the heart of an extensive corruption investigation that led to the conviction of White House officials J. Steven Griles and David Safavian, U.S. Representative Bob Ney, and nine...
, and generally accusing Doolittle of participating in "pay-to-play politics". Doolittle did not seek reelection in 2008 after his home was raided by the FBI in an alleged political corruption investigation.