Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (26488)	4/2/1999 8:36:00 PM
From: RockyBalboa	Respond to of 122087

KPMG partner probed for "reckless accounting" biz.yahoo.com Friday April 2, 3:46 pm Eastern Time SEC probes KPMG Peat Marwick audit partner By Peter Ramjug WASHINGTON, April 2 (Reuters) - Federal securities regulators alleged Friday that an audit partner at KPMG Peat Marwick, the global accounting and consulting firm, failed to properly audit the books of Rockies Fund Inc. (OTC BB:ROCE - news), a venture capital fund that invests in small startup companies. Carroll Wallace, an audit engagement partner in KPMG's Denver office, failed to adequately plan audits of the fund's 1994 and 1995 financial statements, the Securities and Exchange Commission charged. He also ''failed to maintain an attitude of professional skepticism'' by ignoring indications that the fund's valuations of certain stock it held were inflated, and did not appropriately question claims made by the fund's management, alleged the SEC. ''We charged that he was reckless in conducting this accounting,'' said Dan Shea, head of the SEC's Denver office. ''This is part of the commission's efforts to crack down on shoddy auditing work.'' The case is related to one the SEC conducted last summer against the fund and three of its officers for allegedly defrauding investors by overstating the fund's net assets between June 1994 and December 1995. In that case, the SEC alleged they failed to fairly value Premier Concepts Inc. (Nasdaq:FAUX - news) stock which was restricted and required to be held for two years. They improperly designated that stock on its books as unrestricted, or free-trading, stock, and then it valued it at the price of free-trading stock, the commission alleged at the time, pointing out that restricted stock has virtually no market. "Now Wallace comes in and does the audits and we say that he was reckless in his audits in '94 and '95 by basically assenting the valuation that the fund assigned to (the Premier Concepts) stock, said Bob Intartaglio, the SEC'S assistant director in Denver. KPMG spokesman George Ledwith said the SEC action ''is utterly without merit.'' He also questioned the timing of the enforcement case but predicted that Wallace will be vindicated. ''We are concerned and disappointed that the commission would wait this long before determining to bring charges against Mr. Wallace ... We're confident that Mr. Wallace should be and will be vindicated, and are fully committed to his defense.'' Wallace's Denver-based lawyer, George Curtis, did not immediately return a phone call seeking comment. A hearing will be held before an administrative law judge to determine whether the charges are true, and if so, how Wallace, a certified public accountant, should be disciplined. More Quotes and News: Premier Concepts, Inc (Nasdaq:FAUX - news) Rockies Fund Inc (OTC BB:ROCE - news)