Internal Revenue Service Commissioner Mark Everson, center, discusses the indictment of nine individuals and the criminal wrongdoing of KPMG, which has agreed to pay 56 million in fines, restitution and penalties as part of an agreement to defer prosecution of the firm. Also at Monday's press conference, are David Kelley, left, U.S. Attorney for the Southern District of New York, and U.S. Atty. Gen. Alberto Gonzales.

New York ? Eight former executives of accounting firm KPMG were indicted Monday and the firm agreed to pay $456 million as it admitted it sold fraudulent shelters to help wealthy clients avoid paying billions in taxes.

The firm, part of the accounting industry’s so-called Big Four, itself avoided a potentially devastating criminal indictment, agreeing to submit to an independent monitor and not to commit further wrongdoing.

The Justice Department called it the largest criminal tax case ever filed, and said the KPMG scam allowed the firm’s clients to avoid paying $2.5 billion in taxes.

KPMG admitted it helped “high net worth” clients evade billions of dollars in capital-gains and income taxes by developing and marketing the tax shelters, and concealing them from the Internal Revenue Service. The $456 million fine includes $128 million in forfeited fees that KPMG earned by selling the fraudulent tax shelters.

Federal prosecutors also released an indictment of nine men – eight former KPMG executives and an outside tax lawyer who worked with the firm – charging them with conspiring to defraud the IRS.

Among those charged was Jeffrey Stein, who was named deputy chairman of KPMG in April 2002. His lawyer did not immediately return a call for comment. There was no immediate word on when the nine men would appear in court.