NEW YORK, Aug. 29 (UPI) -- U.S. accounting firm KPMG LLP expressed regret Monday for activities that led to its accepting a $456 million fine to avoid criminal prosecution.
The so-called deferred settlement gives the smallest of the Big Four accounting firms somewhat of a break in the legal fallout over controversial tax shelters. KPMG still faces class-action lawsuits and client litigation over the tax shelters.
"We regret the past tax practices that were the subject of the investigation. KPMG is a better and stronger firm today, having learned much from this experience," said KPMG LLP chairman and Timothy P. Flynn in a statement.
Under the terms of the settlement, charges will be dismissed Dec. 31, 2006, when the firm complies with the terms of the agreement. Richard C. Breeden has been selected to independently monitor compliance with the agreement for a three-year period.