March 14, 2018
Foreign Affiliates of KPMG, Deloitte, BDO Charged in Improper Audits (SEC Press Release 2018-39)
The SEC alleged that without registering with the Public Company Accounting Oversight Board, the Zimbabwe affiliates of Deloitte & Touche and KPMG improperly audited the majority of assets and revenues of a publicly traded company. Although the two principal auditors (KPMG's South African affiliate and BDO's Canadian affiliate) were registered with the PCAOB, the SEC alleged that they improperly relied upon the work of the two unregistered foreign component auditors to complete their audits of the company. Accordingly, the SEC charged the foreign affiliates of KPMG, Deloitte & Touche, and BDO for circumventing the PCAOB's oversight. Without admitting or denying the findings, BDO Canada agreed to pay a $50,000 penalty, KPMG in South Africa agreed to pay a $100,000 penalty, Deloitte in Zimbabwe agreed to pay disgorgement and interest totaling $99,057, and KPMG in Zimbabwe agreed to pay disgorgement and interest totaling $141,305. READ FULL TEXT Orders: BDO Canada; Deloitte & Touche: KPMG Inc.; and KPMG
File this one under it's a slow news day and I was desperately looking for addition stuff to pad this otherwise thin offering: Erie Man Charged with Punching Out Federal Courthouse Complex Window (DOJ Press Release)
Paul Howard Scalf was indicted in the United States District Court for the Western District of Pennsylvania on a charge of willfully injuring or committing any depredation against any property of the United States. Sometime around December 23, 2017, a couple of days before Christmas, Scalf allegedly "punched out a window causing it to shatter on the southwest side of the Erie Federal Courthouse Complex which caused damaged in excess of $1,000.00." If convicted, Scalf faces up to 10 years in prison, a fine of $250,000, or both. Depredation against government property? Depredation of property?? Well, you live long enough and you can still come across something new. Imagine that our federal tax dollars actually go to purchase a window that not only costs over $1,000 but could be shattered by nothing more than a measly, old punch. Now that's one helluva a procurement system!
You ever watch a fight in which it's hard to tell who the winner is? In today's BrokeAndBroker.com Blog we are asked to score a bout between a public customer and his former stockbroker. Frankly, the customer is a loser in terms of the decision. On the other hand, it's sort of tough to find a winner on the other side of the card. I'm a loser. No . . . I'm a loser.