KPMG fires partner amid insider probe

KPMG fires partner amid insider probe


KPMG resigned as the auditor for two companies and fired the partner overseeing its Los Angeles audit practice amid allegations the person leaked confidential client information to a third party who used it to make stock trades.
The Securities and Exchange Commission is investigating the partner's actions, according to a person with direct knowledge of the situation. Herbalife and Skechers USA said in statements that KPMG told them it's withdrawing. Skechers said the accounting firm cited a federal probe of the partner for selling information about the footwear maker and other clients.
KPMG's employees "unequivocally condemn this individual's rogue actions", it said in a statement on its website. "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 said stock trades tied to its former partner involved several West Coast companies. It didn't identify them or the executive. BLOOMBERG