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GASLOW v. KPMG LLP

19 A.D.3d 264 (2005)

797 N.Y.S.2d 472

LAWRENCE L. GASLOW, Appellant, v. KPMG LLP et al., Respondents.

Appellate Division of the Supreme Court of the State of New York, First Department.

June 23, 2005.

Defendants' alleged inducement of plaintiff to invest in an Offshore Portfolio Investment Strategy (OPIS) that the IRS later determined to be illegal does not warrant recovery for the payment of taxes and interest to the taxing authorities. Plaintiff's tax liability naturally flows not from defendants' alleged fraud or other tortious acts, but rather from the fact that he removed proceeds from his "qualified replacement property...

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