Tuesday, January 06, 2009

More on the Big Four Sucking, KPMG edition

Some of KPMG's accomplishments over the last fiver years, courtesy of wikipedia:

  • In 2004, KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company Lernout & Hauspie Speech Products NV.[10]
  • In 2005, the U.S. member firm admitted criminal wrongdoing in a multi-billion dollar tax shelter fraud.[11]
  • In 2006, Fannie Mae sued KPMG for malpractice for approving years of erroneous financial statements.[12]
  • In February 2007, KPMG Germany investigated for ignoring questionable payments in Siemens bribery case.[13] (Siemens agreed to pay a record $1.34 billion in fines to settle the case in December, 2008.)
  • In October 2007, KPMG's member firms in the UK, Germany, Switzerland and Liechtenstein merged to form KPMG Europe LLP. They now have joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.[3]
  • In March 2008, KPMG accused of enabling “improper and imprudent practices” at New Century Financial, a failed mortgage company.[14]
  • In March 2008, KPMG agreed to pay $80 million to settle suits from Xerox shareholders over manipulated earnings reports.[15]
  • In November 2008, Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.[16]
  • In December 2008, two of Tremont Group’s Rye Select funds, audited by KPMG, had $2.37 billion invested with the Madoff "Ponzi scheme."[17] Class action suits were filed

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