These fines stem from a controversial late-1990s audit of technology giant Xerox...

Via The Washington Post:

SEC hits 4 KPMG execs with record fines

Reuters
February 22, 2006

Four former and current partners of Big Four accounting firm KPMG agreed to pay record-setting fines to settle charges stemming from a 1997-2000 earnings manipulation scheme at copier maker Xerox Corp., U.S. regulators said on Wednesday.

The Securities and Exchange Commission said three of the executives agreed to pay civil penalties and to be suspended from practice before the SEC, with rights to reapply in one to three years, while a fourth partner agreed to be censured...

...The SEC said the four individuals agreeing to settle were Ronald Safran, KPMG engagement partner on the Xerox audit for 1998 and 1999; Michael Conway, senior engagement partner on the audit for 2000; Anthony Dolanski, engagement partner for 1997; and Thomas Yoho, review partner from 1997-2000...

..."The Xerox fraud was a wide-ranging, four-year scheme to defraud investors," said Paul Berger, SEC associate director of enforcement. "The cases brought by the SEC ... have resulted in over $55.2 million in penalties and disgorgement"...

More here.

Another former KPMG partner, Joseph Boyle previously settled with the SEC.

-- MDT

Labels: KPMG