Federal prosecutors in New York have charged a former partner at accounting firm KPMG with conspiracy, the former partner is accused of obstructing authorities by concealing fees he and others received for setting up tax shelters.

Robert Pfaff, of Englewood, Colorado, who already faces a trial on unrelated charges stemming from other tax shelters, faces court on new charges to defraud the US and to commit tax evasion and wire fraud, and trying to obstruct and impede the Internal Revenue Service, Reuters reports.

A two-count indictment filed in New York, reveals Pfaff and his co-conspirators at a Saipan company in the western Pacific hid millions of dollars in fees from tax shelter transactions by channeling the money into Philippine bank accounts and distributing them between themselves.

Pfaff failed to report approximately $US3.75m (₤1.85m) in income which he received between 1993 and 2000 on his tax returns, according to the indictment.

Further reading:

Ex-KPMG adviser pleads guilty in tax shelter case