David Rivkin, a former KPMG tax partner, has pled guilty to conspiracy and tax-evasion in relation to his work on phoney tax shelters for nine clients.

Rivkin entered his plea in a New York court and faces up to five years in jail, the Wall Street Journal reported.

He admitted to setting up the tax shelters by creating $235m (£134m) in phoney tax losses and thus helping his clients avoid paying taxes to the Inland Revenue Service from 1999 to 2000.

The deal increases pressure on the other 18 defendants scheduled to go to trial in the case.

Last year KPMG reached a settlement with government prosecutors paying $456m (£261m) in a deal that allowed the firm to avoided a criminal indictment.