Ex-Audit Inspector Sentenced to 8 Months in KPMG Cheating Case (2)

A former employee of the U.S. audit regulator drew an eight-month prison term for leaking confidential information to KPMG LLP to help the Big Four firm improve its annual inspection outcome.

Cynthia Holder was sentenced Aug. 9 before Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York. She avoided a fine, which could have been as high as $150,000. But she’ll have to pay restitution that might amount to hundreds of thousands of dollars.

Holder’s attorneys had sought a sentence of probation, arguing that she played a minor role in the test cheating ...