Finding Fraud Was College's Job, Not KPMG's, Auditor Says

Law360 (October 30, 2019, 8:04 PM EDT) -- A retired KPMG partner testified Wednesday that the onus was on Merrimack College to detect a $4.1 million student-loan fraud in its financial aid office, telling a Massachusetts jury that auditors had recommended that Merrimack verify its student loans but couldn't do that for the school.

During the third day of the Boston trial, Steve Caron, the former head of KPMG's New England college and university audit practice, returned to the stand and under questioning by KPMG attorney George Salter of Hogan Lovells, squarely put the blame for the fraud on the college.

Caron was the partner in charge of the...

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