[rowe33]

I’m surprised nothing’s been posted about this yet. The KPMG partner in charge of audits here in the Southwest area has been charged with insider trading after giving confidential information to a golfing buddy whose business was struggling.

Just about the worst thing our profession can do and will likely have a huge effect on the KPMG Los Angeles office for the near future at least.

https://www.latimes.com/business/money/la-fi-mo-kpmg-auditor-sg-20130409,0,63287.storygallery

BEC: passed!
FAR: passed!
REG: passed!
AUD: passed!

[Anonymous]

I've been following the story and when I first read it I thought “What an idiot!” The bad thing is that when this kind of crap happens, the entire profession suffers. It's sad and disgusting at the same time.

[Anonymous]

I just don't understand why anyone does this. The partner didn't even make that much off it (which is beside the point since he shouldn't have done it at all).

I don't know what happens in situations like this, but I could see it affecting the firm's employees' wallets when raise time comes around.

[Anonymous]

I'm with you K917, I can't comprehend why someone would do something like this. Greed is the only explanation, but even that isn't good enough to justify destroying your life. But I guess those of us who are ethical and moral will never understand it.

[Whatdidyou]

It's not just amount the employee's wallets. KPMGs la office has already lost two clients with possibly more to come out of this (didn't I read somewhere that this guy was his offices managing partner?). Regardless the office lost business which isn't good for anyone in that office.

REG - Passed!!
BEC - Passed
FAR - Passed
AUD - Passed

Study Materials: Becker basic course

[Anonymous]

I believe he was the managing partner of his office and the whole Southwest area.

[The Dingo]

So…An opening for Sr. Partner in the California office?

Fire up the resumes!

[Anonymous]

@The Dingo – LOL. That's what my husband said too.

[mangos]

@The Dingo – With 5 clients definitely leaving, and probably more leaving soon I doubt they'll be admitting any new partners soon.. lol

FAR (5/07/13): 96

[Anonymous]

Anyone have any thoughts on how hard this could hit the company as a whole? I realize this was the actions of one person, but in an industry that rides on company reputation I imagine this could be a pretty big hit.

Or do you think since KPMG reacted so quickly (terminating the partner) that could limit the impact to the whole firm?

[Getting a CPA]

Hope not – they write my check 🙂

[Anonymous]

Me too! That's why I asked!

[Fading Novel]

Here is the scary part. About 20 years ago when I was a kid my mom was hired on to work for KPMG by this partner and worked with him a couple of times on some public audits. After this came out she told me she would never have expected this from him and he seemed like a really nice guy. Bottom line, you can never really know who is capable of doing this.

PS. My mom worked for KPMG only for a couple of years.

FAR - 85 (CPAExcel with Ninja Notes), 71 (CPAExcel)
AUD - 79 (CPAExcel w/Ninja Notes)
BEC - 77 (CPAExcel w/Ninja Notes)
REG - July/August 2013, 74 (CPAExcel w/Ninja Notes & NO COFFEE during the AM test!)

[I just love this]

Terrible news. I hope this punk's actions don't reflect on the firm as a whole, and the entire legend of partners. KPMG is a great firm. I feel KPMG put out the fire as best as possible.

REG- Waiting 7/1/13
BEC- Waiting 7/23/13
AUD- Studying 8/12/13
FAR- Signed up 10/1/13
Studying with CPAExcel and Wiley Test Bank.

[Author]

Replies