Bank auditors face SEC charges

In its first case against auditors stemming from the financial crisis, the Securities and Exchange Commission on Wednesday took action against two KPMG employees who had given a clean audit opinion to a Nebraska-based bank holding company that later failed because of bad loans it had made to real estate developers in Nevada and Florida.

The SEC asked an administrative law judge to bar John Aesoph, 40, a partner in the Omaha office of KPMG, and Darren Bennett, 35, a senior manager, for their roles in an audit of TierOne in 2008. That included what the SEC said was a failure to take steps to review the audit after evidence emerged that the auditors had been misled about whether the bank had taken large enough write-downs on the value of real estate development loans.

— From wire reports

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