Justice Dept Joins Lawsuit Against KPMG

The Justice Department has joined a lawsuit alleging that KPMG helped a client defraud the American government through submitting bogus expense claims, reports the New York Times.

The whistle-blower suit sees the accounting firm accused of assisting the Columbia/HCA Healthcare Corporation in misrepresenting costs associated with patient care, so as to receive payment for costs that were not eligible for reimbursement.

A former Columbia employee claimed that KPMG helped some Florida hospitals owned by Columbia set up secret reserves, which were kept in case government auditors discovered the scheme.

Now the Justice Department is to join in with the case. Legal experts reportedly believe that this could be the first time that the government has held an accounting firm liable under the whistle-blower statute for taking part in the fraudulent actions of a client.

A KPMG spokesperson denied that the firm was engaged in any wrongdoing.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.