SEC Charges Former KPMG Partner and Friend with Insider Trading

The SEC charged the former partner in charge of KPMG's Pacific Southwest audit practice and his friend with insider trading on nonpublic information about firm clients.

The SEC alleges that a KPM partner tipped his friend with confidential details about five KPMG audit clients and enabled the tippee to make more than $1.2 million in illicit profits by trading ahead of earnings and merger announcements.

See: SEC Press Release and SEC Complaint.
Related News: "SEC Charges Two KPMG Auditors with Improper Audit of Nebraska Bank Hiding Loan Losses During Financial Crisis" (January 9, 2013).