As refresher, some time back senior level staff from KPMG worked to illegitimately gain access to the list of engagements which were going to be subject to inspection by PCAOB. You can catch up on the news by reading my posts with tag of Big 4.
This is old news at this point. Those of us interested in the ethical failure still want to monitor the status of the players. Previous list, found here, has been reworked since it was getting a bit cumbersome to update and confusing to read.
The five KPMG staff and one PCAOB staff who were charged are listed below with their status at various times. Updates will be mentioned as time passes and this page updated with new status.
Overall status:
- 10/19/20 – 1 released from prison, 1 sentenced & awaiting deportation, 2 awaiting sentencing, 2 convictions on appeal.
- 12/13/20 – 4 sentenced (of whom 1 released from prison, 1 to serve house arrest after deportation, 2 on probation/supervised release) and 2 convictions on appeal.
Updates:
- 10/18/20 update – David Britt was sentenced to six months home confinement to be served from his new home in Australia after he is deported from the United States.
- 12/13/20 update – Thomas Whittle sentenced to two years supervised release and Brian Sweet sentenced to time serviced, three years probation, and to-be-determined restitution.
- 1/4/22 – Brian Sweet and David Britt surrendered their CPA license to the California Board of Accountancy in 11/21 and 8/21, respectively.
Participants and their status:
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Scott Marcello
Former KPMG partner until ??
Vice Chair of Audit
- Not indicted.
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David Middendorf
Former KPMG partner until 4/17
National Managing Partner for Audit Quality and Professional Practice Group, in Department of Professional Practice (DPP)
Reported to Marcello
age 55 in 12/19
- 1/22/18 – indicted.
- 2/11/19 – scheduled trial date.
- 3/11/19 – convicted on three of four felony counts.
- August 2019 – expected sentencing.
- 9/11/19 – Sentencing scheduled – Sentenced to one year plus one day.
- 1/15/20 – Banned from practice before SEC.
- 1/16/20 – Has appeal of his conviction underway.
- 10/18/20 – Still on appeal; not listed at Bureau of Prisons.
- 12/13/20 – Still on appeal; not listed at Bureau of Prisons.
- 1/4/22 – Not listed at Bureau of Prisons; presumably case is still on appeal.
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Thomas Whittle
Former KPMG partner until 4/17
National partner-in-charge for Quality Measurement in DPP
Reported to Middendorf
age 56 in 12/19
- 1/22/18 – indicted.
- 10/29/18 – guilty plea to five counts (wire fraud and conspiracy).
- 10/29/18 – agrees to cooperate with government.
- 9/13/19 – scheduled sentencing, postponed.
- 12/20/19 – sentencing scheduled.
- 9/16/20 – still awaiting sentencing.
- 12/2/20 – sentenced to two years supervised release; he avoided jail time because he testified against David Middendorf and Jeffrey Wada at their trials.
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Chief Auditor
- Not indicted.
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David Britt
Former KPMG partner until 2/17
Co-leader, Banking and Capital Markets Group
Reported to Chief Auditor
age 55 in 12/19
- 1/22/18 – indicted.
- 2/11/19 – scheduled trial date.
- 10/19 scheduled trial date; his trial was severed from trial of Mr. Mittendorf and Mr. Wada.
- 10/3/19 – pleaded guilty to one felony count of conspiracy wire fraud.
- 5/8/20 – scheduled sentencing.
- 9/16/20 – sentencing is expected on 9/23/20.
- 10/9/20 – no jail time, sentenced to 6 months home confinement, to be served after deportation to his native Australia.
- 12/13/20 – Not listed at Bureau of Prisons website, which is expected.
- 8/30/21 – Surrendered California CPA license to Ca. Board of Accountancy.
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Brian Sweet
Former KPMG partner in DPP, 4/15(?) to (?)
Former PCAOB associate director 3/14 to 4/15
age 42 in 12/19
- 1/?/18(?) – guilty plea (conspiracy and wire fraud).
- 12/20/19 – sentencing scheduled.
- 9/16/20 – still awaiting sentencing.
- 11/20/20 – sentenced to time served, three years probation, and restitution in amount to be determined; also avoided jail time because he testified against David Middendorf and Jeffrey Wada.
- 12/13/20 – Not listed at Bureau of Prisons website, which is expected.
- 11/1/21 – Surrendered California CPA license to Ca. Board of Accountancy.
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Cynthia Holder
Former KPMG executive director, 8/15 to 4/17
Former PCAOB Inspections Leader, 12/11 to 8/15
- 1/22/18 – indicted.
- 10/16/18 – guilty plea (4 counts: 2 wire fraud, 1 wire fraud conspiracy, and 1 conspiracy to defraud U.S.).
- 4/5/19 – scheduled sentencing; prosecutors calculate could be 41 to 51 month sentence; postponed on 4/5/19.
- 6/7/19 – postponed date scheduled for sentencing (per tweet by @TheNewsHam).
- 8/9/19 – Sentenced to 8 months in prison. Supervised release. Fine of $400. Subject to restitution with amount to be determined.
- Bureau of Prisons register number 35321-479.
- As of 11/20/19, scheduled release date is 6/30/20.
- 11/29/19 – Banned from practice before SEC.
- As of 1/26/20, scheduled release date is 6/13/20.
- 6/20/20 – released from custody per Bureau of Prisons.
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Jeffrey Wada
Former PCAOB Inspections Leader, 2/12 to 2/17
age 44 in 12/19
- 1/22/18 – indicted.
- 2/11/19 – scheduled trial date.
- 3/11/19 – convicted on three of four felony counts.
- August 2019 – expected sentencing.
- 10/11/19 – Sentenced to 9 months in prison. Restitution to be determined.
- 12/24/19 – Bureau of Prisons register number 75835-112. Not in custody as of 12/24/19.
- 1/15/20 – Banned from practice before SEC.
- 4/6/20 – Not in custody.
- 9/16/20 – Appealing conviction.
- 10/18/20 – Still on appeal; Bureau of Prisons status still not in custody.
- 12/13/20 – Still on appeal; Bureau of Prisons status still not in custody (Register 75835-112).
- 1/4/21 – Still not in custody of Bureau of Prisons; presumable case is still on appeal.
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