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On July 20, after his latest round of hearings in the KPMG LLP tax shelter case, flame-throwing federal district court Judge Lewis Kaplan had a new demand: He ordered lawyers for the 16 former KPMG partners or employees who are defendants to submit affidavits disclosing who had referred their clients to them. The reason, as Kaplan explained at the hearing, was his concern that KPMG and its lawyers at Skadden, Arps, Slate, Meagher & Flom had directed the individual defendants to lawyers “who would understand that the best thing to do here for these individuals would be what was in KPMG’s best interest.”

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