Defendant Name: KPMG LLP

Defendant Type: Other

Initial Case Details

Legal Case Name In the Matter of KPMG LLP and John Riordan, CPA
First Document Date 15-Aug-2017
Initial Filing Format Administrative Action
File Number 3-18110
Allegation Type Issuer Reporting and Disclosure
AAER 3888

Violations Alleged

Other
• 4C(a)(2) Exchange Act

Related Violations Alleged

KPMG LLP is alleged to have caused Miller Energy Resources, Inc.'s violation of Sec 13(a) of the Exchange Act.
KPMG LLP is alleged to have caused Miller Energy Resources, Inc.'s violation of Rule 13a-1 of the Exchange Act.
KPMG LLP is alleged to have caused Miller Energy Resources, Inc.'s violation of Rule 13a-13 of the Exchange Act.

Resolutions

First Resolution Date 15-Aug-2017
Headline Total Penalty and Disgorgement $6,233,999

Related Documents:

34-81396 15-Aug-2017 Administrative Proceeding
Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Sections 4C and 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On August 15, 2017, the SEC instituted settled cease-and-desist proceedings against KPMG LLP and John Riordan, CPA. The SEC stated: "This case involves improper professional conduct and securities law violations by KPMG and Riordan relating to a review and audit of the financial statements of Miller Energy Resources, Inc. ("Miller Energy"). During its fiscal 2010, Miller Energy acquired certain oil and gas interests located in Alaska (the "Alaska Assets") for an amount the company estimated at $4.5 million and then subsequently reported those assets at an inflated value of $480 million in its fiscal 2010 financial statements. This asset valuation violated generally accepted accounting principles ("GAAP") and overstated the fair value of the assets by hundreds of millions of dollars. KPMG was hired as the company's auditor during fiscal 2011, the year following the acquisition of the Alaska Assets, and issued an audit report containing an unqualified opinion on Miller Energy's fiscal 2011 financial statements. However, in conducting the audit and review of the financial statements for fiscal 2011 and the third quarter of fiscal 2011 ("3Q2011"), respectively, Respondents failed to comply with standards promulgated by the Public Company Accounting Oversight Board ("PCAOB"), chiefly with respect to the procedures relating to the oil and gas properties that contained the overstated asset values."

Other Defendants in Action:

John Riordan, CPA

Related Actions:

In the Matter of Miller Energy Resources, Inc., Paul W. Boyd, CPA, David M. Hall, and Carlton W. Vogt, III, CPA
Miller Energy Resources, Inc.
Carlton W. Vogt, III
David M. Hall
Paul W. Boyd