KPMG, one of the country's biggest auditing firms, has fired a senior partner in its Los Angeles office for allegedly engaging in an insider-trading scheme.
The partner passed confidential client information to someone who then traded stocks in several West Coast companies, KPMG said in a statement posted on its website. The partner, whom the firm did not identify, was in charge of KPMG's audit practice in the L.A. office.
KPMG said it notified two of its clients it would have to withdraw audits performed for the companies, though it had no reason to believe the reports contained any financial misstatements.
The firm described the partner's conduct as "rogue actions."
"This individual violated the firm’s rigorous policies and protections, betrayed the trust of clients as well as colleagues, and acted with deliberate disregard for KPMG’s long-standing culture of professionalism and integrity," the firm said.