Three partners at KPMG in the US have been given record fines by the Securities & Exchange Commission for their part in a US$1.2 billion fraud scheme by the Xerox Corporation.
Ronald Safran and Michael Conway agreed to pay a civil penalty of US$150,000 each - the largest fines ever imposed on individual auditors - while Anthony Dolanski agreed to pay $100,000. Their licences to practice as accountants was also suspended. A fourth partner, Thomas Yoho, agreed to be censured by the Commission.
The settlements relate to a fraudulent scheme involving the manipulation of accounting for leases of Xerox office equipment, between 1997 and 2000. These manipulations helped Xerox to "close the gap" between its actual performance and what it promised Wall Street, says the SEC.
The case against Safran, Co...