The appointment of Richard Breeden is one of many reforms reportedly being considered during the auditor's negotiations with the government.
Federal prosecutors negotiating a possible settlement with KPMG LLP regarding its sale of allegedly abusive tax shelters are reportedly considering imposing government supervision and new restrictions on the Big Four auditor's tax practice.
To avoid a criminal indictment, KPMG would also have to pay about $450 million in penalties, according to The Wall Street Journal, citing people familiar with the matter.
Reportedly, the Department of Justice has tentatively selected former Securities and Exchange Commission chairman Richard Breeden as an outside monitor for KPMG. Breeden, a former executive of accounting firm Coopers & Lybrand, was also the court-appointed monitor for WorldCom Inc. and the lead investigator for Hollinger International's internal probe into financial misdeeds at the newspaper chain. The Journal also noted that WorldCom (now MCI Inc.) and Hollinger are KPMG audit clients and had been KPMG tax-shelter clients.
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