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A two-day hearing over whether to suppress proffer statements of three defendants in the KPMG tax shelter case ended Thursday with defense lawyers insisting that government coercion on attorney fees violated their clients’ rights.

Southern District of New York Judge Lewis Kaplan again criticized government pressure on KPMG to limit or cut off the payment of fees to three ex-employees — and to fire them if they refused to cooperate with investigators or invoked the Fifth Amendment.

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