Watchdog Vows To Dog Accountants Who Crap On Investors

PwC: Are you listening?

It’s highly unusual for the SEC to go after counsel to firms that are under investigation for fraud and reporting violations, as many have attested. But maybe hell is freezing over or, rather, the polar ice cap is melting?

US financial markets watchdog vows to hold members of the profession to account if they are found to have failed in their obligations

The Securities and Exchange Commission has put the profession on notice as it continues to pursue individuals connected with the collapse of Refco.

The SEC filed a suit at the US District Court in New York yesterday against Joseph P. Collins, a partner at the law firm of Mayer Brown, claiming that he substantially assisted Refco and its corporate successor, Refco Inc as they failed to disclose hundreds of millions of dollars in debt and related transactions.

‘Financial and disclosure frauds are often possible only if an attorney, an accountant, or some other outside professional assists,’ said Linda Chatman Thomsen, director of the SEC’s division of enforcement. ‘The commission relies on these professionals to act as gatekeepers to our markets. We will aggressively pursue individuals who ignore their professional obligations and instead assist in their clients’ violation of the federal securities laws.’

Refco, a leading New York-based financial services and commodities brokerage firm, collapsed in 2005.

1 reply
  1. Independent Accountant
    Independent Accountant says:

    That the SEC and DOJ rarely go after attorneys for SEC registrants is largely a product of job search. Does some kid two or three years out of law school want it known that he aggressively looks to discipline attorneys working for firms he might want to be employed by?

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