Please ensure Javascript is enabled for purposes of website accessibility
February 1, 2023

Accounting News Roundup: Forgetting a Career Limiting Move and Long Cons | 08.23.17

accounting news vanilla

Forgetting a career limiting move

If you get in trouble with the Securities and Exchange Commission and they suspend you for, say, five years — do you forget about it? I mean, five years is a decent stretch, so things change, you move on with your life, you find some new work. So would you remember the five-year suspension? I don’t know. I kinda think you would.

The SEC, on the other hand, definitely remembers. This litigation release tells the story of an accountant who practiced before the Commission without applying for reinstatement:

Michael J. Hooper of Spokane, Washington repeatedly violated an SEC order entered against him in 1999 suspending him under SEC Rule of Practice 102(e) from appearing or practicing before the Commission as an accountant, with the right to apply for reinstatement after five years. The Commission entered the 1999 order against Hooper after a federal court permanently enjoined him from violating certain antifraud provisions of the federal securities laws in an action in which Hooper was alleged to have made materially false and misleading statements and omissions in violation of those laws.

The recent court order found that although Hooper never applied for reinstatement, he helped publicly traded companies between 2006 and 2013 prepare financial statements and disclosure forms that were subsequently filed with the SEC.

Right, the SEC is not going to forget. So even if we give everyone the benefit of the doubt, you probably shouldn’t either.

Accountants behaving badly

Although this section of ANR has mounted a considerable body of anecdotal evidence, a Hiscox study found that “Middle-aged employees in the accounting or finance area were the most likely to […] steal from any company.”

The Hiscox study also found that “long cons” that stretch out for years  The most successful of these, was a scam of (half) a lifetime:

The longest-running theft Hiscox found stretched for nearly four decades. An Iowa credit union employee diverted $2.5 million from customer deposits into her own account, and that of her children, from 1978 until 2015. The credit union, which Hiscox didn’t name, eventually had to liquidate.

Imagine embezzling money for 37 years. “How was work today, dear?” “Oh, you know, the usual. Helped some customers, got another $185 bonus.”

Still, with such a relatively small sum, Robert DeNiro won’t be starring in your biopic.

Previously, on Going Concern…

Part II of Accounting for Stuff With Tim Gearty. He bestowed more wisdom on the new revenue recognition rules.

Also, something new — Going Concern Studios is our in-house creative team that creates native content for our employers and advertisers. (Full disclosure: That means they paid us for it). Their first effort is for Assurance Dimensions, a Florida-based audit-only firm that doesn’t use timesheets and “compensates you for what you actually do, not how long it takes you to do it.”

In other news:

Get the Accounting News Roundup in your inbox every weekday by signing up here.

See something we missed? Have a comment or complaint? Email us at [email protected].

Image: iStock/Lenushka2012

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

a dog wearing VR

Monday Morning Accounting News Brief: Deloitte on Microtransactions; More EY Split Roadblocks; Have You Become Irritable? | 11.28.22

Happy Monday! Here’s some stuff that’s going on. Several US audit firms told the Financial Times that they had elevated some or all of their crypto-related clients to the status of “high risk”, triggering a more thorough audit that will take longer and lead to higher bills; some clients could ultimately be dropped altogether. KPMG […]

woman working on a laptop with a dog beside her

Monday Morning Accounting News Brief: The Leadership Void; KPMG Gets Fined (Again); PwC Ups Leave | 10.3.22

Deloitte launches Global Sustainability & Climate learning program that aims to enhance skills and capabilities of Deloitte people to help address a global societal challenge. Dubai’s financial regulator has provisionally fined KPMG and one of its former partners $2 million over the firm’s auditing of Abraaj, the emerging markets private equity group that collapsed in […]