According to court records, he purchased two KPMG-marketed tax shelters (known as OPIS and TRACT) through his financial advisers at Morgan Stanley to offset taxes on his sale of Broadcom stock in 1999 and 2000.
In early 2002, after the IRS offered shelter users a chance to voluntarily come forward and settle up, Nicholas paid the back taxes, interest and penalties he owed on the KPMG OPIS and TRACT ploys.
"The threat of that oil being sold at any moment can lead to more risk for companies that might put more oil in storage, " says Tom A. Kloza, publisher at Opis Energy Group, which tracks the heating oil market.