Accounting firm KPMG fires partner in LA unit

AP News
Posted: Apr 09, 2013 8:28 AM

NEW YORK (AP) — Accounting firm KPMG has fired a partner at its Los Angeles unit for allegedly giving private client information to a third party, who then used it for stock trades involving several West Coast companies.

KPMG said in a statement that it was informed of the alleged actions last week and that it immediately dismissed the partner. The firm did not disclose the partner's name.

The privately held company said that the partner violated its policies and betrayed the trust of clients and colleagues, acting "with deliberate disregard for KPMG's long-standing culture of professionalism and integrity."

KPMG has 22,000 partners and employees.

The company also said it had to resign from working with two clients, saying the partner's behavior impacted the firm's independence. KPMG said it told the clients it must withdraw its auditor reports. It said that there's no reason to believe the companies' financial statements were materially misstated.