The U.S. Government Accountability Office (“GAO”), a government watchdog group, recently reported the results of its 2014 audit of the Securities and Exchange Commission (“SEC”) financial statements. The findings included (i) troubling reports of internal control failures at the very agency tasked with policing the reporting activities of others and (ii) warnings of vulnerability to …
Permanent link to this article: https://betweenthenumbers.net/2015/05/gao-tells-sec-to-look-in-the-mirror-regarding-internal-control-failures/
May 06
IRS Workers Found to Have Evaded Tax Payment
A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations. The wrongful activity included: failing to file timely claiming improper dependents claiming improper first-time homebuyer credits The law calls for the termination of such employees unless it is waived by the IRS commissioner. …
Permanent link to this article: https://betweenthenumbers.net/2015/05/irs-workers-found-to-have-evade-tax-payment/
May 04
Compliance Officer Gets Whistleblower Award
The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or …
Permanent link to this article: https://betweenthenumbers.net/2015/05/compliance-officer-gets-whistleblower-award/
Apr 15
SEC Takes Action on Overly Restrictive Confidentiality Agreements Affecting Whistleblowers
A recent enforcement action by the Securities and Exchange Commission (“SEC”) is the first of its kind, concerning improperly restrictive language contained in a company’s confidentiality agreements that could potentially impede whistleblower rules and protections. The SEC charged KBR Inc. with violating Rule 21F-17 under the Dodd-Frank Act by requiring witnesses in internal investigations to …
Permanent link to this article: https://betweenthenumbers.net/2015/04/sec-takes-action-on-overly-restrictive-confidentiality-agreements-affecting-whistleblowers/
Apr 12
Pro-Athlete Lending Firm is an Alleged Ponzi Scheme
A Florida based financial advisory involved in professional athlete lending has been charged with defrauding its clients. On April 7th the Securities and Exchange Commission (“SEC”) charged William D. Allen and his business partner Susan C. Daub with running a Ponzi scheme which promised investors 18% returns, however a sizable portion of these “returns” were …
Permanent link to this article: https://betweenthenumbers.net/2015/04/pro-athlete-lending-firm-is-an-alleged-ponzi-scheme/
Apr 06
Massive Fraud in the Middle East
The New Yorker magazine recently ran a scathing review of the collapse of The International Banking Corporation (“TICB”), the largest credit default and potential Ponzi scheme ever experienced in the Middle East. At its core was a man named Maan al-Sanea, a son-in-law to a prestigious Saudi Arabian family, who borrowed billions of dollars from …
Permanent link to this article: https://betweenthenumbers.net/2015/04/massive-fraud-in-the-middle-east/
Apr 05
New Revenue Recognition Rules Delayed
The Financial Accounting Standards Board (“FASB”) has announced a proposal to delay by one year the effective date of implementation of the new revenue recognition standard under Generally Accepted Accounting Principles (“GAAP”), making the new date of change for public companies those reporting periods beginning after December 15, 2017. Private companies would have an additional …
Permanent link to this article: https://betweenthenumbers.net/2015/04/new-revenue-recognition-rules-delayed/
Apr 04
The Results Are In For the 2014 AICPA Trends in Forensic and Valuation Services Survey
The American Institute of Certified Public Accountants (“AIPCA”) recently released the findings of its most recent Survey on International Trends in Forensic and Valuation Services (“Survey”). The Survey polled 443 professionals, including 55% who worked in public accounting and/or consulting firms. The remainder were professionals working in business and industry, education, law enforcement, and government. …
Permanent link to this article: https://betweenthenumbers.net/2015/04/the-results-are-in-for-the-2014-aicpa-trends-in-forensic-and-valuation-services-survey/
Apr 02
Fiduciaries Continue to Face 401(k) Conflict of Interest Allegations
A group of workers at Ameriprise Financial Inc. settled their federal lawsuit against the company regarding management of their 401(k) contributions that were invested in Ameriprise funds and generated millions in allegedly excessive fees for the company. The case was filed in 2011 by Roger Krueger and a group of Ameriprise plan participants. The plaintiffs disputed …
Permanent link to this article: https://betweenthenumbers.net/2015/04/9358/
Mar 31
VC Firm Wins Gender Based Failure to Promote / Wrongful Termination Case
Last week a half male/half female jury determined that Kleiner Perkins Caufield & Byers (“Kleiner Perkins”), one of the country’s most prominent venture capital (“VC”) firms, did not discriminate against junior partner Ellen Pao (“Pao”). Pao was seeking $16 million in economic damages in addition to punitive damages to compensate for the alleged inequitable promotion …
Permanent link to this article: https://betweenthenumbers.net/2015/03/vc-firm-wins-gender-based-failure-to-promote-wrongful-termination-case/