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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Fluor Corp. for Accounting Improprieties
The Securities and Exchange Commission today announced that Irving, Texas-based Fluor Corporation will pay $14.5 million to settle charges stemming from the company’s improper accounting on two large-scale, fixed-price construction projects. Five former and current officers and employees also agreed to settle related charges for causing Fluor’s violations. *** The SEC’s order found that Fluor, […]
5 Companies Fined for Masking Accounting Errors in Late Filings
Five companies have settled SEC charges that they didn’t inform investors of pending financial statement corrections as part of late filing notices. The companies agreed to pay penalties ranging from $35,000 to $60,000 for not disclosing to investors substantial shifts to the companies’ financial results as required when they informed the market they couldn’t meet […]
Report Suggests SEC Stepping Up Scrutiny of Deceitful Accounting | Corporate Counsel
A new report suggests that the U.S. Securities and Exchange Commission is putting more muscle into ferreting out nitty-gritty accounting shenanigans by public companies. The report by Cornerstone Research found that the SEC publicly disclosed 68 accounting and auditing enforcement actions in its fiscal year ending Sept. 30, a 55% increase from the prior year. Notably, more […]
Retailers’ ‘Borderline Misleading’ Accounting Targeted by SEC
Public companies that tout overly rosy earnings numbers that don’t comply with US accounting rules, watch out. The Securities and Exchange Commission is blitzing businesses with questions about alternative accounting measures and asking them to justify their use. In some cases they’re telling them to quit showcasing earnings that strip out normal, recurring expenses. Retailers […]
2022 Accounting-related Securities Class Action Settlements Rise
The total value of accounting case settlements grew by more than 67% in 2022 to $1.4 billion, up from $817 million the previous year. Key contributors to the significant jump in total settlement value were an increase in the average settlement amount to $31.7 million in 2022 from $24.7 million in 2021, coupled with a […]
Mazars to Pause All Work for Crypto Clients, Binance Says – Bloomberg
Mazars Group, the accounting firm used by crypto giant Binance Holdings Ltd. and other big players in the industry to vouch for their assets held in reserve, has halted all work for crypto clients, dealing a major blow to an industry seeking to shore up confidence in the wake of FTX’s collapse. The French firm […]
Crypto’s Evolution as an Asset Class Needs Better Accounting
But after last year’s initial hype, the corporate balance sheet clamor for bitcoin has slowed to a crawl, likely due in part to complex accounting rules. For observers and investors in public companies holding bitcoin, disclosure rules are also vague and deter transparency. Tesla recently left a mystery in its wake as it sold 75% […]
Tether’s Former Auditor Fined $1M by SEC for Sloppy Accounting
The U.S. Securities and Exchange Commission filed and settled charges last week against Friedman LLP, the former auditing firm of stablecoin issuer Tether, finding “serial violations of the federal securities laws” and numerous instances of “improper professional conduct,” according to an order published Monday. In the SEC’s investigation of Friedman LLP’s audits of two publicly […]
Mattel, PwC Obscured Accounting Issues, Former Executive Says – WSJ
The accounting problem was tied to Mattel’s ownership of Thomas & Friends, an animated children’s show about talking trains. The finance team discussed fixing the problem and restating earnings, with the expectation that Mattel would have to admit to shortcomings in its accounting and reporting procedures, said Brett Whitaker, who was Mattel’s director of tax […]
SEC Chief Enforcement Accountant Cites the Use of Data Analytics, Self-Disclosure and Cooperation as Key Factors in Investigating Accounting Misconduct | BakerHostetler – JDSupra
With more than 130 highly trained enforcement accountants at his disposal, Matthew Jacques, the Chief Accountant of the Securities and Exchange Commission (“SEC”), provided a firsthand glimpse into current enforcement objectives for policing accounting and auditor misconduct. Mr. Jacques was a featured panelist at the Securities Docket annual conference at the Mayflower Hotel in Washington, […]