When accounting goes unaccounted for
Background: Tim Flynn talking shop with King Abdullah of Jordan.
Same rules: Submit possible captions in the comments. We’ll choose our favorites — with preference given to those with an accounting/KPMG bent — and then let you vote for the best one.
Memo to TF: If you’ve got a transcript of the convo, feel free to post your favorite highlight as your submission(s).
We’ve received multiple reports of layoffs that occurred last week in the audit practice of the Los Angeles office.
The numbers have been described as “a few” and the news has been “hush hush” making us wonder if these cuts were some unfinished business from either the August and September rounds.
There also have been rumors about additional layoffs in Dallas tax but we don’t have any more details than that.
If you’ve got any details for these layoffs or details for other cities, get in touch and discuss in the comments.
Just a brief update on KPMG leadership moves that we’ve been following.
Late Friday we learned that the office managing partner (“OMP”) of the New York office has been promoted to serve as the Vice Chair of Market Development. Our understanding is that all the OMPs across the country will report to this position and it will focus on 21 key markets in the U.S.
The former head of the New York Financial Services will move up as the new New York OMP. No word on who will fill the leadership role in NYFS.
This appears to be the first instance where the OMP was promoted to a national position as opposed to a “client-facing role”.
Continue to keep us updated with the latest on the comings and goings of the grand poobahs and discuss your thoughts on the progress of the restructuring in the comments.
Earlier GC coverage of KPMG Leadership Changes and Restructuring:
Another KPMG Shake-Up
KPMG Shake-up Continues
Rumor Mill: KPMG Restructuring Plans
(UPDATE 2) KPMG Atlanta Shake-up Makes Us Wonder
Following up on our earlier reports of leadership changes in several cities, — as well as the Southeast region — the Charlotte Business Journal is reporting that John Switzer now sits in the big chair of KPMG’s Charlotte office.
Swizter ascended to the new gig after serving as the managing partner of the Cleveland, Louisville, and Lexington offices.
This appears to be another restructuring switcheroo as Switzer’s predecessor, Paul Chapman, will be “[taking] a new role, serving some of the firm’s largest audit clients.”
As prestigious as that sounds, we’re inclined to believe that the bigwigs decided some fresh blood was needed in Ken Lewis land.
If you’ve got any news on freshly minted grand poobahs in your office, kindly pass along the details and feel free to speculate on the progress of the restructuring in the comments.
KPMG names managing partner [Charlotte Business Journal]
Klynveldians have been warned about certain software that should not, under any circumstances, be downloaded by any of you:
In the firm’s defense — and since they didn’t mention it — many of these programs are used by you to waste precious billable hours complaining to each other about a myriad of things including why the Phil Mickelson hats only come in black and white and where Tim Flynn and John Veihmeyer buy their suits (we hear Marshall’s but that could be total bupkis).
Furthermore, we’re not going to sit here and say that none of these programs present a legitimate risk. That would be foolhardy and insensitive.
What we do wonder about is what “disciplinary action” involves. Feel free to wildly speculate on this in the comments.
Not a surprising choice but we thought it would be a closer race. The winner, garnering 45.5% of the vote, after the jump.
What’s not known is what kind of offers they are getting. It’s an absolute certainly that it includes the standard CYA language: “Due to the volatility of the current economic conditions, your starting salary may be adjusted to market at the time you begin employment.”
Thanks to everyone for voting and we’ll have the results from our salary satisfaction poll later today.
It’s election day after all. Vote for your favorite caption. You have until tomorrow night, 11:59 PDT to vote.
Finalists after the jump.
Don’t forget to submit your captions for last Friday’s contest. We’ll take submissions through midnight tonight and run the poll tomorrow morning.
Pictured below is R.L. Stine, often known as the “Stephen King of children’s literature”. Mr. Stine did some pre-Halloween scary story-telling yesterday while visiting students. The occasion celebrated KPMG’s Family for Literacy distributing its one-millionth book. “I think it would be a very scary world without books,” said Stine.
Rules: Submit possible captions in the comments. We’ll choose our favorites — with preference given to those with a Big 4/KPMG/accounting bent — and then let you vote for the best one.
Well you can if you want but somebody will probably flash a piece on the lanes and you’ll end up entering a world of pain.
If you’re in Beta Alpha Psi at the University of Illinois, KPMG is hosting a charity bowling event tonight at 6 pm. Hell, even if you’re not a member you should do a jay and head on over and get your roll on. What’s the worst they can do, throw you out?
This is getting awkward, KPMG. Tax shelters continue to be a problem for some of your partners.
Three local businessmen have been indicted on a charge of conspiracy to defraud the Internal Revenue Service of more than $240 million.
According to the indictment filed in federal court on Oct. 22, two of the men allegedly attempted to defraud the IRS by making several “false and misleading statements” concerning a corporate tax shelter that was implemented by them.
Daryl J. Haynor, a partner in KPMG’s federal tax practice for the mid-Atlantic Area, based in Tysons Corner; and Jon Flask, a Vienna-based attorney, are both named in the suit.
“Mr. Haynor has been placed on administrative leave pending a review of the situation,” said George Ledwith, a spokesman for KPMG, on Monday.
Obviously our little warning concerning tax shelters was way too late.
According to the federal indictment, Flask, Haynor and Parker implemented and marketed a tax shelter named “Sale Leaseback of Tenant Improvements Strategy (SLOTS),” from 1998 through 2006.
The shelter enabled various U.S. corporations to claim tax deductions totaling more than $240 million on corporate income tax returns.
The indictment alleges that Flask, along with Haynor and Parker, misled and deceived the IRS by misrepresenting facts concerning the SLOTS tax shelter during IRS audits of companies claiming tax losses generated by the shelter in the years 2002 through 2004.
Mr. Haynor has been with KPMG for over 25 years. He and Mr. Flask face up to eight years in prison and $500,000 in fines. If you know any details, shoot us an email or discuss in the comments.
Judging by everything that has gone on in the past few months, we can’t emphasize enough how dangerous this could have been. Video after the jump.
Some Atlantans Get to be a Cop for a Day [Fox 5 Atlanta]