KPMG Fronting Ex-Employees' Legal Fees In PCAOB Case

By Jack Newsham (April 3, 2018, 8:53 PM EDT) -- Three former employees of accounting giant KPMG who are accused of recruiting employees from the Public Company Accounting Oversight Board and pumping them for information on the regulator's confidential inspection plans told a New York federal court Tuesday that KPMG is paying the trio's legal fees.

David Middendorf, a former KPMG national managing partner for audit quality and professional practice; Thomas Whittle, a former national partner-in charge for inspections; and David Britt, the firm's former Banking and Capital Markets Group co-leader, were among six people charged in the scheme earlier this year.

It was disclosed at a conflicts-of-interest hearing Tuesday that...

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