Eighty-year-old Charles Esposito of Hainesport, NJ, who worked as an accounting manager for Oldcastle BuildingEnvelope for 45 years, was sentenced to five years in state prison on June 9 after admitting to stealing $2.5 million from his former employer, according to the Philadelphia Inquirer. Assistant Prosecutor Joseph Remy said during the sentencing hearing that ol’ […]
Almost three years after being indicted for his involvement in one of the biggest ethics debacles in public accounting history, former KPMG partner Thomas Whittle was sentenced today to two years of supervised release. And that’s all, folks. The six accountants who were charged with fraud and conspiracy by the feds on Jan. 22, 2018, […]
When former KPMG partner Thomas Whittle goes before U.S. District Court Judge J. Paul Oetken to hear his sentencing, scheduled for Dec. 2, he will be the last of the five ex-KPMG executives who were indicted in January 2018 for their roles in a scheme to steal confidential audit inspection information from the PCAOB to […]
Former KPMG partner Thomas Whittle—one of the five decision-makers at the House of Klynveld who were indicted in January 2018 for making the very poor decision to steal confidential information on which clients’ audits the PCAOB would be reviewing so KPMG could improve its dismal inspection results—is scheduled to be sentenced on Dec. 2, according […]
Adrienne mentioned this in Footnotes on Friday, but just in case you missed it, former KPMG partner David Britt won’t be serving any time behind bars for his role in the audit firm’s scheme to cheat the PCAOB inspection process a handful of years ago. Instead, Britt, 57, who is a resident of North Carolina, […]
[Article updated with new sentencing date.] A Manhattan federal court judge will decide next month whether former KPMG executive David Britt should spend some time inside a jail cell for his involvement in a scheme to steal secret audit inspection information from the PCAOB. But if Britt, former co-leader of KPMG’s Banking and Capital Markets […]
Cynthia Holder, one of the “KPMG 5” who was sentenced to eight months in federal prison in August for her role in a scheme to steal confidential audit inspection information from the PCAOB, was “denied the privilege” of appearing or practicing before the SEC as an accountant, the commission announced on Nov. 29. The SEC […]
Being passed up for a promotion can cause a person to do really dumb things in a fit of anger. For now-former PCAOB inspections leader Jeffrey Wada, the really dumb thing he did was illegally tip off executives at KPMG—not once but twice—about which KPMG audits the PCAOB would be reviewing so the firm could […]
David Britt is the latest former KPMG partner who has admitted guilt for participating in a scheme to steal confidential audit inspection information from the PCAOB. Britt, 56, who was a co-leader of KPMG’s Banking and Capital Markets Group, pleaded guilty to one count of conspiracy to commit wire fraud on Oct. 3. His trial […]
A second member of the “KPMG 5” will serve jail time for his involvement in an information-stealing scheme to cheat the PCAOB inspection process. David Middendorf, former national managing partner for audit quality and professional practice at KPMG, was sentenced this morning in Manhattan federal court to one year and one day in federal prison, […]
The first prison sentence was handed out today in Manhattan federal court to one of the five former KPMG executives indicted in a scheme to steal confidential audit inspection information from the PCAOB. Cynthia Holder, a former PCAOB inspections leader who later worked as an executive director at KPMG, was sentenced to eight months in […]
During his sentencing for a slew of crimes related to his role in a tax-evasion scheme, accountant William Frio, "lost his footing and hit his head on the defense table." The judge dropped a 5-year prison trip on Frio and ordered him to pay $1.7 million in restitution for his misstep. [Philly.com]
Attestation Update has the details as well as a clever dig at the GC faithful: Everyone who had been looking forward to a generous serving of popcorn and schadenfreude on Thursday will have to wait another 2 months. That's right. Mark April 21, 2014 on your calendars and keep an eye on Attestation Update just […]
Attestion Update has been on this like the feds on London's nuts: Sentencing is schedule for former KPMG regional audit PIC Scott London on February 27, 2014 regarding his plea agreement admitting insider trading. That’s the latest visible information in the federal system that shows filings. Previous post mentioned on 2/13 that Something in London […]
UPDATE: See update below regarding sentencing timing. It's been quite awhile since we've been on the Scott London beat, but something interesting was brought to our attention late last week that's worth sharing. In a court filing from last month, London's attorney Harland Braun laid out the arguments against a Presentence Report by the United States […]
With a sentence coming down circa any minute, the Koss embezzlement queen is probably starting to freak just a tad.
Accordingly, her attorneys are pulling out all the stops. The defense is now claiming that Sue’s assistant, Julie Mulvaney was “an enabler” and kept SS from having a nervous breakdown when things got dicey around the scam:
•In May of each year — a few weeks prior to scheduled visits from Koss outside auditors — Sachdeva would review the cash in the company’s ledgers, compare it with the cash in the company’s bank accounts and then determine the difference between the two. Sachdeva would presume the shortfall was equal to her theft of company funds.
“She would then call Julie Mulvaney into her office in a panic, and tell Mulvaney that cash was ‘off’ by a certain amount,” the memo states. “Mulvaney would respond by saying ‘let me look at everything and get back to you and don’t worry.’”
Mulvaney would then alter figures in the ledgers, the memo states.
•Sachdeva’s attorneys contend Mulvaney worked independently and without direct supervision “and only minimally shared her methods with Sachdeva.”
“Sachdeva, who was preoccupied with the fear of being discovered and too emotionally distraught to manage the fraudulent entries, would constantly ask Mulvaney at work if everything had been ‘fixed,’ and would frantically call Mulvaney at home, sometimes late at night, to see if the cash had been reconciled,” the memo states.
Sue was so emotionally distraught throughout the ordeal that she wandered into Valentina Boutique on a number of occasions and spent $1.4 million. Yeah, that makes sense.
UPDATE, circa 5:30 pm: From Milwaukee public radio, Suz gets 11 years.
Koss embezzlement mastermind Sue Sachdeva will receive her prison sentence tomorrow for ripping the headphone cobbler off to the tune of $34 million. Yesterday, the government’s sentencing memorandum (full document after the jump) was released and the prosecution and defense each made their arguments for a heavier/lighter prison sentence.
Naturally, the prosecution is seeking the maximum sentence, as is Koss CEO Michael Koss, who wrote a letter to the court with his thoughts:
“She stole from the hardworking employees of the company and their families, and ultimately the stockholders of the company,” Koss wrote. “They are the true victims of her crimes.”
But never mind that for two. Tracy Coenen breaks down the defense’s argument for S-squared to receive a lighter sentence and it’s a hoot:
They argued that Sue Sachdeva should get a lighter sentence because:
a. she’s been a law-abiding citizen until now
b. the fraud was “simple”
c. and poor, poor Sue has a “compulsive shopping disorder”
Jump over to Tracy’s post for more analysis but our take on these three reasons are as follows:
A. “Until now,” as in “right up to the moment she pleaded guilty”? If so, that sorta ignores a scam that went on for over a decade.
B. Again, so simple that it went on for over ten years? You’re really making the Koss management look like a bunch of idiots…Wait, maybe they’re on to something here.
C. Please. Show us someone who wasn’t addicted to shopping in the 90s and 00s.