Kathryn Keneally, a lawyer for Brockman, said, "We look forward to defending him against these charges".
Smith's lawyer did not immediately respond to a request for comment.
Brockman is the CEO of software company Reynolds and Reynolds.
Robert and Dorothy Brockman attend a dinner in 2011 in Houston. Reynolds & Reynolds noted in a statement that Brockman's alleged crimes were comitted "outside of his professional responsibilities with Reynolds & Reynolds".
"I have not seen this pattern of greed or concealment and cover-up in my 25-plus years as a special agent", Mr.
Brockman earned about $2 billion in capital gains made through his Vista investments, according to the indictment.
"The allegation of a $2 billion tax fraud is the largest-ever tax charge against an individual in the United States", David Anderson, the US attorney in San Francisco, said at a news conference.
According to the indictment, Brockman backdated documents and used encrypted code words to communicate with offshore money handlers.
The indictment states that Brockman conspired with a person described as Individual 1, who was put in charge of St. John's Trust Company, an entity in Bermuda that was owned by Brockman but was set up in a way to hide any ties it had to him. He's also charged with wire fraud for using intermediaries to manipulate debt securities at his company.
Smith is the founder of Vista Equity Partners, a San Francisco-based private-equity fund that had a single investor: Brockman.
Like many wealthy Americans, Brockman set up offshore trusts that on paper were overseen by independent directors.
The CEO of the private-equity firm Vista Equity Partners will admit misconduct but will not be prosecuted, sources told Bloomberg. Nonetheless, the charges against Mr. Smith, who has been called the richest Black man in America, drew national attention a year ago when he was giving the commencement address at Morehouse College in Atlanta and made a surprise announcement that he would pay off the student loans of the roughly 400 graduates. The historically Black institution in Atlanta said the donation amounted to $34 million.
That comes to about $140 million altogether, which Smith has consented to pay in exchange for a non-prosecution agreement with the Department of Justice.
"Smith committed serious crimes, but he also agreed to cooperate", he said. Anderson said the agreement showed that "it is never too late to do the right thing".
Forbes lists Smith as #461 on its billionaires list, with a net worth of more than $5 billion. The Vista chief put over $200 million of his own profits into one offshore entity and used another to hide his ownership and control of the first entity, the government said Thursday.
Smith admitted creating offshore entities to avoid paying some taxes in the US. Prosecutors said Mr. Smith used the money to purchase ski properties in the French Alps and a vacation home in Sonoma, California.
But starting in 1999, prosecutors say, Brockman began carefully stashing money overseas and covering his tracks to avoid investigators.