KPMG's Cut Corners Cost School $7.4M, Jury Told In Closings

Law360 (November 14, 2019, 7:58 PM EST) -- An attorney for Merrimack College told a Massachusetts jury during closing arguments Thursday that a former employee’s student loan fraud would have been stopped years earlier if KPMG auditors had done financial testing they were supposed to do, while KPMG’s counsel said the college had only itself to blame.

The closing arguments came in the third week of the Boston trial and saw Merrimack attorney Elizabeth Mulvey of Crowe & Mulvey LLP tell the jury that financial aid director Christine Mordach's scheme — taking out federal Perkins loans on behalf of students without their knowledge — had ended up costing the school...

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