Bellach and Daly allegedly did not comply with KPMG’s strict instructions to preserve documents when it started its investigations into possible cheating. Daly deleted text messages from Bellach and lied to the firm’s investigators that he did not receive any answers to the training exams. Bellach also deleted the text messages due to Daly’s encouragement.
Donovan allegedly supported the sharing of exams and answers within his team and falsely told investigators that he did not send, receive or share answers.
Bellach, Daly, and Donovan willfully violated the Public Company Accounting Oversight Board (PCAOB) rules and the Code of Professional Conduct of the American Institute of Certified Public Accountants (AICPA), according to the SEC.
The Commission also determined that the three former KPMG audit partners violated the Exchange Act and its Rules of Practice.
Bellach, Daly, and Donovan accepted the SEC order without admitting or denying the allegations against them. They agreed to be suspended from appearing or practicing before the SEC as an accountant. They can apply for reinstatement after three years, two years, three years, and one year, respectively.
