Category: Big 4

If it happens at a Big 4 accounting firm, we’re talking about it here.

KPMG Is Probably Happy This Guy Left Prior to Getting Really Creative

charlie-and-the-chocolate-factory-20050715092008864.jpgA former KPMG partner has pleaded guilty today to conspiracy charges related to tax shelter scheme.
According to the WSJ, “[Robert] Pfaff is currently serving a 97-month prison sentence after he and two others were convicted on tax evasion charges last year in a case once billed as the largest tax-shelter fraud case in U.S. history. In that case, prosecutors had alleged that Pfaff and another former KPMG employee left KPMG in 1997 and formed an investment adviser known as Presidio Advisory Services, which was little more than a ‘tax shelter mill’.”
Doesn’t ‘tax shelter mill’ sound like a wonderful place of capitalistic creativity and entrepreneurship where things just magically happen and you don’t why or how? Sort of like a financial Charlie and the Chocolate Factory? The kind of place where you wish you worked?
Ex-KPMG Tax Partner Pleads Guilty In Tax-Shelter Case [WSJ]

(UPDATE 4) KPMG Layoffs Follow-up

There are several cities where we can confirm layoffs but total numbers are hard to come by and KPMG is not returning our calls/emails at this time. Here are cities that we definitely know got hit:
• Chicago – At least five in Int’l Tax. At least one in financial services tax.
• Denver – Transaction Services
• Kansas City – Six to eight in Tax
• Houston – Transaction Services
• San Fran – Five in Fed Tax
• LA and OC – Several comments report ten to twelve in tax for LA, five for OC
• DC/Tyson’s Corner/McLean – Between five and eight total in tax and advisory.
• Silicon Valley – Thirteen total. Five to Seven Mostly in Tax, possibly some in EVS and one in Transaction Services.
• Seattle and Portland – Two in Tax for each
• Salt Lake City – Three in Tax
• Detroit – Three to five in Tax
• Jacksonville, FL – Two in Tax
• New York – Three in the transfer pricing specialty group in the tax practice. Three in the real estate practice. According to our source, these were performance performance related.
• Boston – Two in Fed Tax and one in M&A
• Nashville – Two in Tax
• Tampa – Two in Tax, one manager and one SA
We haven’t been able to confirm much out of the New York office, although it sounds as though Transaction Services has had some cuts. If you’ve got new details on any city, let us know.
UPDATE: See updates above. Altogether it appears to be over thirty-five in the west alone. Continue sending us updates.
UPDATE, Thursday, 11:54 am: Information is still crawling in. We heard that the number of nationwide layoffs for Advisory was 50, including 20 in the NY/Boston offices but we’re still waiting on more information. Continue to send tips in and make sure you note which office you’re in. Oh, and apparently the Dallas office needs SA’s in audit.
UPDATE, Friday, 12:30: Still a few tips coming (see updates above) in but it seems the worst (hopefully) is over.
UPDATE, Monday 3:04 pm: Just a couple more updates above for Nashville and Tampa.

E&Y: This Stuff Is So Important That We Can’t Let You Be Distracted By Regular Work During the Week

Late November is typically a time of year when most of you can coast a little bit. Oh sure, some of you certifiable types are still working like your miserable lives depend on it (and probably not charging the time) so we’ll ignore you for this particular post.
We learned yesterday that the New York and Philadelphia offices of E&Y are apparently so strapped for time during the eleventh month that the annual accounting & auditing update has been scheduled for the 21st which is on a…wait for it…Saturday. That’s EVERYONE, staff through partners.
Now maybe there’s a perfectly good explanation for this odd scheduling. Perhaps the rulers of the Ernstiverse aren’t down with the whole day of rest thing. Or they figure since you’re getting two days off the following week, your ass is lucky that you’re not working Sunday too. Whatever the case may be, E&Y seems to be good at making promises so don’t make plans.

Layoff Watch: KPMG

The Chicago office is the first to report having the sit-downs. Five professionals in one of the specialty tax practices at all levels except partner. We’ve seen several comments from people that have received emails but we haven’t received any confirmation and we’re still waiting to hear back from KPMG.
If you have severance details, number let go, or other information, send to tips@goingconcern.com or discuss in the comments.

Rumor Mill: KPMG Layoff Started Early in Philly

Not that Klynveldians need reminded but tomorrow is the rumored next round of layoffs. This time its rumored to be the tax practice and perhaps the advisory practice as well making cuts.
Someone in the Philadelphia office got their call earlier than planned according to a tip we received:

…one associate who received a phone call at 3:00 PM letting her know that her services were no longer needed. She was initially told this would likely happen on the 21st, but for some reason, the powers that be thought it more appropriate to call someone on the 15th

If you’ve got details on your office or if you have received a request for a meeting, let us know and we’ll continue to update you as we hear more.

Somehow Deloitte Gets Roped Into a Chicago Political Scandal

Rod Blagojevich.jpgBig D is probably just a pawn in the whole game but it serves as a nice example of how Illinois political tomfoolery touches just about anyone and everyone.
And Rod Blagojevich is just ridiculous and not relevant for this story but his picture seems to work here, so deal with it.
A criminal investigation into Cook County Board President Todd Stroger that started with questions surrounding the hiring, promotion, and firing of a busboy. Stroger then fired his own cousin, “the county’s chief financial officer amid questions about her dealings with [Tony] Cole.”
Cole is said busboy who must have made a move on Stroger’s cousin but enough speculation. The investigation has now grown wider as prosecutors have now subpoenaed Deloitte.
More, after the jump


Chicago Tribune:

Prosecutors have ordered Deloitte & Touche LLP, the county’s auditors, to turn over “certain documents” pertaining to the 2008 audit of county finances, according to a memo from County Board Finance Committee Chairman John Daley (D-Chicago), who also heads the Audit Committee. Deloitte personnel “may serve as witnesses to a current grand jury investigation,” according to an attached letter sent to Stroger from Deloitte’s Tracey Guidry.

It should be noted that John is the brother of Richard, the Mayor who was elected around the time when the Cubs last won the World Series.
The only word on the documents are that they were used in the ‘customary preparation’ of the audit, according to the Sun-Times.
Safe money is on at least one resignation/removal from office and a small fortune being discovered to have passed through various channels of the City Hall.
Todd Stroger: Probe expands into Cook County Board president’s hiring of ex-busboy [Chicago Tribune]

E&Y Partners Need Pachyderm-like Memory for Counting Emmy Ballots

christina hendricks.jpgToday in dorks in tuxedos news, E&Y is finishing up their counting of the votes for this weekend’s Emmy Awards and hopefully they can handle it.
From the press release:

“We work very hard to safeguard the entire voting process and take the appropriate measures to preserve the accuracy and confidentiality of the awards,” explained Andy Sale, Ernst & Young LLP Lead Partner for the 2009 Emmy Awards. “Our team uses a combination of technology and traditional hand-counting methods to deliver accurate results.”

The technology methods must be terribly advanced for this complex engagement and since some partners can’t even send email, we’re a little concerned. Especially since three people memorize the list of 109 winners.
Plus, since this the 21st time E&Y has done the awards, we’re assuming there will be jager shots before, during, and after the show. Not only will this not help with the whole memorization issue but it could also jeopardize the envelope handoffs and projectile vomiting will blow whatever slim shot they had at hooking up with Christina Hendricks.
Good luck E&Y. Don’t f*ck it up. And if you have second thoughts on sharing results early, you know how to reach us.

We Get It. PwC Wins Every Employer Award in the UK

annoying list.jpgThe UK’s annoying hot crush on PwC continues as the firm has won the The Times High Fliers Top Graduate Employer of the year award.
This is the sixth year in a row that P. Dubs has won this award. They were also named top accountancy firm for the tenth year in row and won the top finance company award this year, the first time an accounting firm has won the award.
We know it’s a little late on a Friday to be asking our UK friends to participate but we’d really like to know how P. Dubs manages to win all these awards.
The vote early, vote often mantra immediately comes to mind but is it legitimately possible that PwC is really the best place to work in the UK year after year? Whatever the case may be, it’s just annoying.
If you’ve done some time across the pond and have stories of Google-esque cafeterias, rub n’ tugs, puppies for everyone and the such, let us know, otherwise, debunk.
PwC voted best place for graduates [Accountancy Age]

(UPDATE) Rumor Mill: KPMG Making Pay Freeze Announcement?

There’s been rumors about pay freezes at all firms and E&Y came out last month to say it’s happening mostly because it’s fair.
Since many of you Klynveldians are probably anxious for some kind of “official” word, we’ll pass this along:

Rumor is the Radio Station will be announcing raises and bonuses on Monday/Tuesday in the Southeast next week (rates are loaded online on the self service connection next Friday for all to see, so talk about waiting until the last minute).
Firm leadership is saying KPMG will pay market and market rates are down when compared to the prior year… so here’s to no raises!

Ernstinites got a voicemail announcing the news which didn’t seem to go over well, so here’s hoping that some kind of live feed from Tim Flynn’s office will be KPMG’s approach for this announcement with Q&A to follow of course. More personal that way, don’t you think?
If you’ve got information on your city or region matching the market rates, drop us an email to us or discuss in the comments.
UPDATE, 2:57 pm: Apparently the offices in the Mid-Atlantic are willing to sit down with you to discuss this as we received a tip that “roundtables” were held by partners to explain the merit increases. Beats a voicemail. If you participated in one of these sit downs or had similar meetings in your region, discuss further.