Six KPMG auditors and a PCAOB employee face criminal and civil charges for leak of confidential PCAOB information to KPMG
In April of 2017, the Wall Street Journal and other media outlets reported the terminations of six KPMG personnel, including the head of the audit practice, and the termination of a PCAOB employee due to the PCAOB employees’ leak of confidential PCAOB inspection information to KPMG in advance of the inspection of KPMG. KPMG discovered the leak and reported it to the PCAOB and SEC. Today, the SEC announced that it is charging six accountants including the former KPMG employees and former PCAOB staff. In a parallel action, the U.S. Attorney’s Office for SDNY today announced criminal charges against the six accountants.