Friedman to pay $1.5M for missed red flags in 2 audits
By 
Adrianne Appel2022-09-26T17:03:00
Accounting firm Friedman will pay more than $1.5 million to settle charges it failed to comply with the standards of the Public Company Accounting Oversight Board (PCAOB) while auditing two companies, the Securities and Exchange Commission (SEC) announced Friday.
Friedman exhibited improper conduct while auditing the companies, including iFresh for fiscal years 2017-20, the SEC alleged in its order. The second firm, unnamed by the agency, was audited by Friedman for fiscal years 2016-20.
The SEC previously charged iFresh, a wholesale grocery business with retail stores in Florida, Massachusetts, and New York, with repeatedly filing materially inaccurate financial statements. iFresh and its chief executive officer, Long Deng, engaged in undisclosed transactions with entities controlled by Deng or that were owned by Deng’s brother, the agency alleged.
Related articles
-
News BriefFriedman latest fined in PCAOB crackdown on unregistered auditor use
Friedman agreed to pay a $100,000 penalty to settle charges by the Public Company Accounting Oversight Board it over-relied on the work of unregistered Chinese firms across 12 public company audits.
-
Article
SEC official advises auditors shift mindset on fraud detection
Paul Munter, acting chief accountant at the Securities and Exchange Commission, issued a statement highlighting auditors’ responsibilities in fighting fraud, including his office’s recent observations of shortcomings in the area.
-
ArticleFINRA fines First Trust $10M for allegedly giving too-generous gifts to brokers
First Trust Portfolios has been fined $10 million by FINRA for allegedly providing excessive meals, gifts, and other incentives to broker-dealers.
More from Regulatory Enforcement
-
ArticleCompliance officers accused of helping criminals run $346 million international payment fraud network
Four U.S. citizens were arrested in California Wednesday in connection with a massive, $346 million international credit card fraud scheme based in Germany, in which compliance officers were allegedly complicit, according to the DOJ.
-
News BriefFinCEN flags $9 billion in Iranian shadow-banking activity, citing SARs filings from U.S. banks
Approximately $9 billion of potential shadow-banking flows tied to Iranian networks in 2024, according to a new analysis from FinCEN. The report highlights how illicit funds are making their way through financial institutions as they meet the requirements of the Bank Secrecy Act (BSA).
-
News BriefCFPB ends probe into Meta’s financial advertising practices
Meta says it is no longer under investigation by the U.S. Consumer Financial Protection Bureau (CFPB), the latest instance of the agency scaling back enforcement under President Donald Trump.