- Associated Press - Monday, June 30, 2014

LINCOLN, Neb. (AP) - Two KPMG LLP auditors have been punished by a Security and Exchange Commission judge who cited their work on the TierOne Bank before it failed.

The SEC filed administrative charges last year against KPMG partner John Aesoph, of Omaha, and senior manager Darren Bennett, of Elkhorn. In her order Friday, administrative law judge Carol Fox Foelak said Aesoph and Bennett knew TierOne’s loan-loss reserves deserved heightened scrutiny and should not have issued a clean audit opinion because of “red flags (that) indicated that management was inept and had an incentive to understate losses.”

Regulators closed TierOne in 2010 and sold its assets.

Aesoph was suspended from working on publicly traded companies for a year and Bennett for six months. Their attorneys say the men are considering appeals.

___

Information from: Lincoln Journal Star, https://www.journalstar.com

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide