August 19, 2005

Miss. to file criminal suit against KPMG- sources

NEW YORK (Reuters) - Mississippi likely will file criminal
charges against accounting giant KPMG because it created a tax
strategy that the state says wrongly let WorldCom, now called
MCI Inc., shield billions of dollars from taxes, informed
sources said on Friday.

Though a few other states have also weighed this strategy,
Mississippi Attorney General Jim Hood is the most determined,
explained the sources, who requested anonymity.

"He's the big dog," said one of the source, referring to
the Democratic attorney general, who in May settled the state's
back tax case with MCI for $100 million in cash and the No. 2
long distance carrier's former headquarters building.

Jacob Ray, the attorney general's spokesman, said: "It is
our standard policy to neither confirm nor deny

A KPMG spokesman was not immediately available to comment.