Late last week, we were informed that the partner in charge of KPMG’s audit practice in our Los Angeles business unit was involved in providing non-public client information to a third party, who then used that information in stock trades involving several West Coast companies. The partner was immediately separated from the firm.
KPMG’s 22,000 partners and employees unequivocally condemn this individual’s rogue actions. This individual violated the firm’s rigorous policies and protections, betrayed the trust of clients as well as colleagues, and acted with deliberate disregard for KPMG’s long-standing culture of professionalism and integrity.
KPMG is resigning two clients after concluding today that the firm’s independence has been impacted as a result of this individual’s behavior, and we have informed those companies it is necessary to withdraw our auditor reports. We have no reason to believe that the financial statements of these companies have been materially misstated.
We regret the impact this individual’s actions have had on any of our clients. KPMG remains committed to the highest standards of professionalism, integrity and quality, and we are dedicated to the capital markets we serve.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 152,000 professionals, including more than 8,600 partners, in 156 countries.
Contact: KPMG LLP
Seth Oster Tim Connolly