KPMG Execs Sanctioned Over Bank Audit

A Securities and Exchange Commission administrative law judge June 27 suspendedfrom SEC practice two KPMG LLP executives who allegedly failed to audit a Nebraska bank properly in connection with loan losses stemming from the financial crisis (In re Aesoph).

ALJ Carol Fox Foelak concluded that the executives’ “course of conduct related to the audit, taken as a whole, constituted `a single instance of highly unreasonable conduct’ within the meaning of Rule 102(e)(1)(iv)(B)(1).”

She barred KPMG partner John Aesoph from SEC practice for one year and senior manager Darren Bennett for six months.

The agency’s allegations against Aesoph ...