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Accounting News Roundup: More Tax Dodgy Swiss Bankers; The IRS *Will* Take Their Cut of Darryl Strawberry’s Money; Grover Norquist – Tax Person of 2011 | 01.04.12

Romney Ekes Past Santorum to Win Iowa [WSJ]
Mitt Romney pulled out a razor-thin victory by just eight votes in the Iowa caucuses, edging out Rick Santorum and opening the Republican primary season with a dose of momentum going into a New Hampshire primary he is heavily favored to win. Mr. Santorum's performance was in some ways more remarkable, as the former Pennsylvania senator vaulted to the top just weeks after he had been little more than a footnote in the race. By effectively tying Mr. Romney, he made at least a tentative case for himself as the conservative alternative to the front-running former Massachusetts governor. Still, many Republicans don't believe Mr. Santorum has the resources for a drawn-out campaign.

MF Global’s U.K. Staff May Not Receive Bonuses Pledged Before Bankruptcy [Bloomberg]
MF Global Holdings Ltd. (MF)’s U.K. employees owed bonuses by the failed broker were placed behind most other creditors in the bankruptcy process and may never receive their money. KPMG LLP, the administrator of MF Global’s U.K. unit, said cash bonuses would be treated as unsecured claims, near the bottom of the creditor pile. Unvested share awards and stock options for the unit’s 700 employees, valued at about $62 million for the year ending in March 2011, are virtually worthless with the stock trading at less than 8 cents yesterday. “It’s most unlikely they will get anything that’s deferred such as share options, stock units or other incentives,” said Jo Keddie, an employment lawyer at law firm Winckworth Sherwood. “The directors and everybody else will suffer significant losses since administrators have very little discretion as to wages, let alone contractual bonuses and other hard-earned incentives.”

Dutch Firm’s Finance Officer Quits After Reorganization [NYT]
A business executive who became the first woman to be appointed chief financial officer of a large Dutch company resigned on Tuesday, citing a dispute over a management reorganization at her employer, the phone operator KPN. Carla Smits-Nusteling, KPN’s chief financial officer, resigned a little more than two years after being appointed, saying she disagreed with a decision to quadruple the top management board to 12 members from three, the company said.

LightSquared names new CFO [Reuters]
Billionaire hedge fund manager Philip Falcone's LightSquared Inc on Tuesday named telecommunications veteran Marc Montagner as chief financial officer, replacing Michael Montemarano. LightSquared is trying to position itself as a low-cost alternative to the big wireless operators like Verizon Communications Inc (VZ.N) and AT&T (T.N). Montagner, who has nearly 25 years of experience, had worked with France Telecom (FTE.PA), Morgan Stanley (MS.N), Sprint Nextel (S.N) and Banc of America Securities (BAC.N).
U.S. charges 3 Swiss bankers in tax evasion case [Reuters]

Prosecutors accused three Swiss bankers on Tuesday of conspiring with wealthy U.S. taxpayers to hide more than $1.2 billion in assets from tax authorities, and sources briefed on the matter said the three worked for Wegelin & Co, one of Switzerland's oldest private banks. The office of the Manhattan U.S. Attorney said in a statement that the indictment charges the bankers with trying to "capture business lost by UBS AG and another large international Swiss bank in the wake of widespread news reports that the Internal Revenue Service was investigating UBS" in 2008 and 2009. The charges signal that U.S. authorities are moving closer to criminal charges against some Swiss and Swiss-style banks that sold tax evasion services to rich Americans, according to the sources.

Darryl Strawberry Ex-Wife Loses $800,000 Dogfight Over Darryl's Mets Money [TMZ]
I know what you're thinking: How did this money not get spent on cocaine?

Former executive in Le-Nature’s soft drink fraud case in Pa. sentenced to 15 years in prison [AP]
An accounting-director-turned-government witness was sentenced Tuesday to five years in prison for faking the financial records of the defunct Pennsylvania soft drink maker Le-Nature’s, and the only executive to maintain his innocence in the $800 million fraud scheme was given a 15-year term. Tammy Jo Andreycak, 44, who cooperated with prosecutors before she was even charged, had hoped for probation or house arrest. She pleaded guilty in 2008 to wire fraud, bank fraud, conspiracy and filing a false tax return as part of fudging accounting records at the behest of former chief executive and company founder Gregory Podlucky.
Run-DMC founder’s kids: Queens of Hock [Tax Watchdog]
Darryl Strawberry and Run-DMC in the same roundup? 

2011 Tax Person of the Year: Grover Norquist [TaxProf]
Honestly, who else?


Posted in ANR