Government and Regulatory Investigations

||Government and Regulatory Investigations

SEC Warns Against Social Media Investor Scams

July 2014 The Internet provides many tools useful in assessing investment decisions. The easy access to analyst research, background information, historical performance and current events has made it indispensable to many investors. Although the benefits are many, one must be cautious of the risks, especially when using information outside the bounds of well-known, established sites. [...]

The International Community Has Different Opinions On Mandatory Auditor Rotation

July 2013 In the past year, the issue of mandatory auditor rotation has been an active area of debate, both domestically and abroad.  The idea of mandatory auditor rotation has been around for years, but has consistently (and successfully) been opposed by the public accounting profession and its large clients.  While the European Union still [...]

PCAOB Reopens Auditor Rotation Issue

August 2011 On August 16, 2011, the Public Company Accounting and Oversight Board (“PCAOB” - the regulator of auditors of publicly-traded companies) issued a concept release that reopenes the idea that auditors of publicly traded companies should be forced to rotate/drop their clients after some lengthy period, such as ten years.  This would dramatically change [...]

SEC Inspector General Report Shows Incompetence At Best, And Fraudulent Cooperation At Worst

September 2009 The Madoff scandal is the largest financial fraud to have ever occurred. The U.S. Securities and Exchange Commission (SEC) Office of Inspector General (OIG) recently issued a report (OIG-519) entitled “Investigation of Failure of the SEC to Uncover Bernard Madoff’s Ponzi Scheme”. To anyone experienced in auditing matters, the OIG report is nothing [...]

Former Madoff CFO Pleads Guilty, Pledging Cooperation That Will Help Both Criminal And Civil Cases

August 2009 One of Bernard Madoff's lieutenants, Frank DiPascali Jr., pled guilty last week to ten federal felony counts and settled an SEC complaint. Of primary importance to the thousands of investors who lost money in Madoff's Ponzi scheme, DiPascali agreed to cooperate with authorities in investigating the Madoff fraud. Because of DiPascali's cooperation, additional [...]

More Resources Will Be Allocated To Financial Fraud Initiatives

February 2009 Government resources are usually allocated based on the political sentiment of the day. Those in charge of investigations understandably want to show that they are accomplishing something. Consequently, once resources are allocated to an investigative area, prosecutions invariably follow. White collar defense lawyers face improving business conditions. This is occurring because (i) increased [...]

DOJ’s McNulty Memo In Evaluating Corporate Cooperation Is No Longer DOJ Policy

July 2008 Cooperation with prosecutors by a corporate suspect has previously been one of the means of determining whether an indictment will be filed, and the amount of penalties sought. The Department of Justice (DOJ) has previously demanded controversial actions as part of the demonstration of this cooperation. In response to legislative pressure, the DOJ [...]