SEC Charges Accountants With Using Leaked PCAOB Information

The SEC brought civil charges against six accountants for using confidential information to help an accounting company pass audit inspections.

The charged individuals include former officials with the Public Company Accounting Oversight Board ("PCAOB") and KPMG LLP. According to the SEC Order, a former PCAOB official, Brian Sweet, accessed and retained confidential information before leaving PCAOB to take a position at KPMG. Mr. Sweet allegedly took information from PCAOB about KPMG clients. The information at issue included the areas of focus of inspection against KPMG clients and the quantitative and qualitative criteria used in determining which clients to inspect. Further, after joining KPMG, Mr. Sweet allegedly continued to receive confidential information from a PCAOB colleague, Cynthia Holder. Ms. Holder also eventually left the PCAOB to join KPMG. A third former PCAOB official, Jeffrey Wada, was charged with leaking information to Mr. Holder while attempting