SEC Charges 5th KPMG Partner in Xerox Case
Thomas Yoho joins four of his KPMG LLP partners in facing Securities and Exchange Commission charges for his part in Xerox Corp. audits, the Associated Press reported.
The SEC added Yoho Friday to an amended complaint that states the auditors in question allowed Xerox to alter its accounting to close a "$3 billion gap between actual operating results and results reported to the investing public."
The SEC claims that Xerox’s accounting irregularities, which showed inflated sales revenue and earnings, date back to 1997. Between then and 2000, the SEC says that Yoho, along with Michael Conway, Joseph Boyle, Anthony Dolanski and Ronald Safran, said that their Xerox audits were conducted according to generally accepted auditing principles and that the company’s financial statements were an accurate reflection of the company’s financial position. The SEC claims neither claim was true. The other four KPMG partners were charged Jan. 29.
Xerox settled its case with the SEC in April 2002 without admitting wrongdoing or claiming innocence. The company, based in Stamford, CT, was required to pay a $10 million fine and reissue its financial statements.
The SEC seeks an order to prohibit Yoho and his fellow defendants from committing further securities law violations and requests that the firm and the partners return all the fees they collected for Xerox audits from 1997 to 2000, the AP reported.
Yoho worked on Xerox audits from 1994 to 2000. According to the AP, his lawyer could not be reached for comment.