On March 11, 2019, a jury convicted David Middendorf, the former National Managing Partner for audit quality at KPMG LLP (“KPMG”), and Jeffrey Wada, a former employee of the Public Company Accounting Oversight Board (“PCAOB”), of wire fraud charges in connection with a scheme to use confidential PCAOB materials to improve KPMG’s performance on PCAOB inspections.  At trial, the government asserted that, beginning in fall 2015, Wada—an inspections leader at the PCAOB—began passing confidential information to KPMG about which KPMG audits the PCAOB planned to inspect.  Middendorf, the government asserted, then launched a program to “re-review” the audits that he knew the PCAOB had selected and gave false explanations to others at KMPG about the reasons for the re-reviews.  The jury acquitted each defendant of conspiring to defraud the United States.

United States v. Middendorf and Wada, 18-cr-36 (S.D.N.Y.)
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