A former high-ranking partner at KPMG LLP was sentenced Wednesday to one year and one day in prison for his role in a scheme to steal confidential information to help the Big Four accounting firm perform better in its annual inspection by a regulator.
David Middendorf, KPMG’s former national managing partner for audit quality and professional practice, was sentenced in Manhattan federal court, following his conviction earlier this year on four criminal counts, including conspiracy and wire fraud.
The prison sentence—a rare punishment for an auditor at a Big Four firm—relates to a high-profile “steal the exam” scandal, in which KPMG partners got advance information from the Public Company Accounting Oversight Board about which audits the accounting regulator planned to review. The partners hoped the advance notice would help KPMG perform better in its annual inspection by reducing the proportion of audits found to have serious deficiencies.
A KPMG spokesman declined to comment on the sentencing.
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