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Former KPMG, PCAOB leaders convicted on fraud counts

Tammy Whitehouse | March 12, 2019

A former KPMG audit leader and a former inspections leader at the Public Company Accounting Oversight Board have been convicted of wire fraud in a scheme to subvert the inspections process with stolen confidential information.

David Middendorf, former national managing partner for audit quality at KPMG, and Jeffry Wada, former inspections leader at the PCAOB, were convicted on one count each of conspiracy to commit wire fraud. Middendorf was also convicted on three counts of wire fraud and Wada on two counts of wire fraud. They each were acquitted of one count of conspiracy to defraud the government. Maximum prison terms on each of the counts is 20 years.

Middendorf's attorney, Nelson Boxer, says the case will continue in appeals. "We've been saying from the outset, in our court filings and arguments, that what occurred here was not...

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