According to this story by Reuters, KMPG will face a fine of just under half a billion dollars. This story notes that eight former executives will be indicted.. However, KMPG will sign a “deferred prosecution” agreement so that the firm will not follow Arthur Andersen into the scrap heap of accounting history.
However, KPMG faces a host of lawsuits over the cause of their problems: tax shelters that have been found by the IRS to not be legal. The “BLIPS” tax shelter, sold to 186 wealthy individuals, was found by the IRS to not be a legal tax shelter. While it brought profits to KPMG during the years it was being sold, I’m sure KPMG regrets it ever being offered.