Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

List of key players in KPMG fiasco over leaked PCAOB inspection lists

with 2 comments

Three accountants in this story entered the above building innocent and left as a felon. Image courtesy of Adobe Stock.

Sometimes you gotta’ have a scorecard to keep track of the players and the story. After a former partner pled guilty this week in the fiasco at KPMG over leaking of PCAOB inspection targets, I had to sort out again who was who.

So, I sketched out a list of the players and a bit of info about each.

Will update this list as the criminal cases move forward.

The roster of players and their status:

Update: More info for Holder added on 10/31/18

 

—–

Scott Marcello

Former KPMG partner until ??

Vice Chair of Audit

—–

Not indicted

 

 

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

—–

1/22/18 – indicted

2/11/19 – scheduled trial date

 

 

 

Thomas Whittle

Former KPMG partner until 4/17

National partner-in-charge for Quality Measurement in DPP

Reported to Middendorf

 

 

—–

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

 

 

Chief Auditor

 

—–

Not indicted

 

 

David Britt

Former KPMG partner until 2/17

Co-leader, Banking and Capital Markets Group

Reported to Chief Auditor

—–

1/22/18 – indicted

2/11/19 – scheduled trial date

 

 

 

Brian Sweet

Former KPMG partner in DPP, 4/15(?) to (?)

Former PCAOB associate director 3/14 to 4/15

—–

1/?/18(?) – guilty plea (conspiracy and wire fraud)

?? – sentencing

 

 

 

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

 

 

Jeffrey Wada,

Former PCAOB Inspections Leader, 2/12 to 2/17

—–

1/22/18 – indicted

2/11/19 – scheduled trial date

 

 

That means the current score is 3 felons, with 3 on deck 3 awaiting trial.

Here are the news articles used to compile the above table:

Update: More info for Holder:

 

Written by Jim Ulvog

October 31, 2018, 8:41 am at 8:41 am

Posted in Audits

Tagged with ,

2 Responses

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  1. Comment from Naked Capitalism after linking to post then quoting opening sentence: “Rather a lot of felonies for Big Four auditor, surely?”

    Yes. Yes, it is rather a lot.

    And stop calling me Shirley.

    Jim Ulvog

    October 31, 2018, 11:31 am at 11:31 am

  2. […] Bezzle: “List of key players in KPMG fiasco over leaked PCAOB inspection lists” [Attestation Update]. “Sometimes you gotta’ have a scorecard to keep track of the players and the story. After a […]


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