KPMG Fires a Senior Partner in an Insider Trading Episode

KPMG said late Monday night it had fired a senior partner in its Los Angeles office after learning that he had provided inside information to an unnamed individual “who then used that information in stock trades involving several West Coast companies.”

The audit firm, one of the Big Four, did not name the partner. It said that as a result of the discovery it had resigned as the auditor of two companies, “after concluding today that the firm’s independence has been impacted as a result of this individual’s behavior.”

The firm did not name the companies, but added, “We have no reason to believe that the financial statements of these companies have been materially misstated.”

Tim Connolly, a KPMG spokesman, said the discharged partner was a “senior partner who led accounts for some of our clients on the West Coast.”

KPMG said it learned of the actions late last week, but did not say how it had learned of the information. It did not say if the Securities and Exchange Commission had begun an investigation, but there is no doubt it will do so if it has not already begun one.

“KPMG’s 22,000 partners and employees unequivocally condemn this individual’s rogue actions,” the statement said.

“This individual violated the firm’s rigorous policies and protections, betrayed the trust of clients as well as colleagues, and acted with deliberate disregard for KPMG’s long-standing culture of professionalism and integrity.”

Although the clients were not named, they will need to file with the S.E.C. within a few days, stating that KPMG has resigned and giving the cause.

The episode will be another black eye for KPMG, which barely avoided criminal prosecution a few years ago because of the tax shelters it marketed. At the time, it was widely believed that the prospect of losing one of the four remaining large firms helped persuade the government not to seek a conviction.

Arthur Andersen, which had been the fifth major firm, collapsed after it was criminally charged for its actions auditing Enron.

A version of this article appeared in print on April 9, 2013, on page B2 of the New York edition with the headline: KPMG Fires a Senior Partner In an Insider Trading Episode.