It’s been just under two weeks since convicted Ponzi boy/swashbuckling industrialist Tom Petters was convicted in his trial and it’s all but off the RADAR of everyone. Unfortunately, we stumbled across the following audio this morning featuring Tom Petters, his part-time lover/executive and government witness Deanna Coleman, and their fellow conspirator Bob Coleman.
It sounds like some Fargo-esque plot gone terribly wrong without the visual of William H. Macy in that ridiculous hat.
It’s pretty clear from where we stand that a jury of cocker spaniels would have found Petters guilty just based on this recording, although we don’t get the ultimate money shot of “this is one big fucking fraud”.
Plenty of interesting moments including lots of talk about lies, money, more lies, Bob White’s “goddamn good imagination” and a flurry of “fucks” right at the end from TP. You do get the feeling that no matter how hopeless TP sounds, he somehow thinks it will all work out. Hindsight!
Around the 10 minute mark is when Petters first starts losing it and around 13:51 he remembers the good old days when “we laughed about it”. This should convince the last of you “Free Tom Petters” hold-outs. Enjoy.
Author: Caleb Newquist
Founding editor, Going Concern.
Preliminary Analytics | 12.14.09
• H.R. 4173, Summary of Accounting and Audit Related Provisions – Lots to digest here but it’s all important, including a possible GASP name change for the PCAOB. [FEI Financial Reporting Blog]
• Invitation to a Conversation: If the Auditors Were Missing from the Financial Crisis — Let’s Ask Why – Jim Peterson doesn’t mince words: “The simple if depressing reason is that their core product has long since been judged irrelevant. The standard auditor’s report is an anachronism — having lost any value it may once have had, except for legally-required compliance.” [Re: Balance/Jim Peterson]
• Accenture Makes Right Decision, Drops Tiger Sponsorship – The awkward inappropriateness of the whole situation is now hitting T. Dubs in the wallet, as Accenture jumps into the “your services are no longer needed” camp. He won’t starve. [The Big Four Blog]
• Open Letter to the Securities and Exchange Commission (Part 5): Issuer Retaliation Complaint Against Overstock.com – Patrick Byrne’s attempt to develop his own Richard Nixon-esque enemies list has been met with fierce resistance. [Sam Antar/White Collar Fraud]
• CPA firms face pricing pinch – “After years of gains since the government started keeping track in December 2003, overall prices for CPA firm services plummeted with the onset of recession in December 2007.” [CPA Trendlines]
• Citigroup to Repay $20 Billion of Government Bailout – $25 bil to go. Get on it. [Bloomberg]
Review Comments | 12.11.09
• House Passes Sweeping Financial Oversight Bill – “The package of regulatory changes would give regulators broad new authority to identify and respond to systemic risks, break up or wind down the riskiest firms, and crack down on abusive lending practices.” Or something like that. [WSJ]
• Blowing 0.09 Might Cost You Your License, but Maybe Not Your Casualty Loss – Something to keep in mind next time you’re considering getting behind the wheel after crushing some High Life (which we absolutely, 100%, do not condone). [Tax Update Blog]
• Tomkinson named managing partner of Grant Thornton LLP’s Southfield office – [GT Press Release]
• Apollo Group, Inc. Expands Board of Directors – They’re making room for Sam DiPiazza, former P. Dubs global chief. [Forbes/Press Release]
• Top Six Tips for Getting in the Door at BDO Seidman – Jay Duke of the BDO Dallas office gives you the lowdown. [FINS]
• Peter R. Scanlon, Who Led Coopers When Big 8 Ruled Auditing, Is Dead at 78 – “In the late 1980s, under Mr. Scanlon, Coopers & Lybrand often drew criticism for shunning the merger mania that engulfed the accounting profession.” [NYT]
• Obama wishes Jews happy Hanukkah – Ditto goes for us: Happy Hanukkah! [AFP]
Accounting Firms Plan to Offer Less Internships in 2010
Back again for round two of the latest Big 4 domination of a BusinessWeek list.
The entire list with company profiles is now available but we’ve pulled some of the more interesting items for your enjoyment, after the jump.
Intern hiring planned for 2010 and interns hired for 2009:
• Deloitte: NA; 2,233
• KPMG: 1,700; 1,745
• Ernst & Young: 1,800; 1,971
• PwC: 2,175; 2,278
• Grant Thornton: 328; 388
&bull RSM McGladrey: 225; 330
Average Total Pay:
• Deloitte: $10,000
• KPMG: $10,900
• Ernst & Young: $9,585
• PwC: $9,848
• Grant Thornton: $11,716
&bull RSM McGladrey: NA – Average hourly wage was $21.33
Interns who received full-time offers:
• Deloitte: 73%
• KPMG: 90%
• Ernst & Young: 92%
• PwC: 89%
• Grant Thornton: 60%
&bull RSM McGladrey: 62%
Interns with offers who accepted:
• Deloitte: 82%
• KPMG: 93%
• Ernst & Young: 92%
• PwC: 93%
• Grant Thornton: 56%
&bull RSM McGladrey: 88%
We don’t know who’s responsible for auditing these numbers so take them for what they are. That being said, if they are indeed kosh, what is up with Grant Thornton’s numbers? With the exception of the average total pay, not too impressive, even when compared to the firm that sponsors Natalie Gulbis.
To add insult to injury, BW uses this picture which some people will be quick to point out is no longer part of GT’s Global Six campaign. Maybe the claim that the GT interns don’t get coffee is bunk?
For the Big 4, it looks like there will be fewer internships available in 2010, which reflects the slimmer hiring budget that has been discussed here. The good news is that unless you do something like arrange an awards ceremony that includes “Most Likely to be the Office Whore” using a work email, you’ll probably get a full-time offer. Discuss the stats and outlook for the menu/coffee gophers in the comments.
Earlier: Deloitte Tops BusinessWeek’s ‘Best Places to Intern’ List, KPMG Gets the Silver
1099s Are All Evidence We Need to Conclude That Tiger Paid for Sex
By now, we’re sure you’ve heard that Madam Michelle Braun has claimed that Tiger Woods not only paid $60k for sex but that both Holly Sampson and Jamie Jungers, two of T. Dubs [insert most recent number here] mistresses, were prosties for her.
It doesn’t sound like Tiger got down with either of the them while they were hooking for Braun (it was just regular throwing money around type stuff) but the Post does quote Braun about TW being a big fan of the ‘girl-on-girl’ action and ‘booze and sex bender[s].’
ANNNNNND they’ve got 1099s for both Sampson and Jungers. So does anyone doubt that the greatest golfer the world has ever known is basically the same as Eliot Spitzer? We’re sure convinced!
Seriously, if a madam goes to the trouble of filling out 1099s for non-employee compensation, we’ve got no reason to disbelieve anything she says.
You may now return to your regularly non-accounting related Tiger Woods coverage.
Woods ‘bought’ cathouse gals [NYP]
jungers_sampson_1099.pdf
Also see: Lesson Learned: Even Madams Pay Their Taxes [Tax Girl]
Layoff Watch ’09: Deloitte
We received word late yesterday about two audit senior mangers in the Tampa office being shown the door yesterday. This makes us wonder if more professionals in the senior manager “parking lot” will take this is as a sign to either move on or will hold out hoping to eventually get a seat at the big table.
There doesn’t seem to be any kind of uniform method to the Deloitte’s cuts so if they’ve recently gone down at your office, let us know.
Does This Mean We Aren’t Going to Find Out Who’s Sleeping Their Way to Partner?
Dammit people, what’s with the amateurs? If you’re going to superficially judge your co-workers, wouldn’t common sense tell you to not to use a work email address?
Holly Leam-Taylor became the latest victim of a viral email craze when her light hearted message to colleagues spread like wildfire across the internet.
In the email, entitled Deloitte First year analysts Christmas Awards, sent on December 8, Ms Leam-Taylor asked her female colleagues to vote on which men in the office they considered most attractive.
A terribly disappointing turn of events, since it was all in good fun:
Miss Leam-Taylor, who studied at Warwick University before landing a place on the prestigious Deloitte graduate trainee scheme, said: “Obviously I never imagined the email would reach this level of awareness. Most people have recognised that what I wrote was in good spirit, but in retrospect I realise it probably wasn’t the best idea.
“It was my choice to resign and I will not be providing any further comment.”
Speaking at the family home in Staines, Middlesex, her father Andrew said: “She is very fed up about the whole thing.”
She’s fed up? What about the rest of us? We were expecting RESULTS.
Pictures, STD reports, the works. Now what the hell are we supposed to do? Is anyone willing to pick this up where poor Holly left off? If you do pick up the torch for crissakes, use a personal email address.
We cannot express our devastation further.
Analyst quits over embarrassing email [Telegraph]
Ernst & Young Updates
We’ve updated the E&Y Greensboro post to include the approximate number of professionals affected plus we’ve added an additional ball of useless to the tchotchke collection. Continue to keep us updated on both.
Job of the Day: Global Asset Manager Needs Someone Who Loves GAAP
Which should be all of you. Okay, tax peeps, you got us but take a peak anyway.
Ashton Lane Group is looking to place someone in a senior accounting analysis and reporting position for a global asset manager in New York. The position requires at least 5 years experience and offers a competitive base and bonus.
Check out more details after the jump.
Title: Financial Reporting Accountant
Location: New York City
Responsibilities: Analysis and documentation of complex transaction terms and accounting treatment, which involves interaction with Business, Legal and Finance; Conducting accounting research and formulating application of the US GAAP framework to transactions, financial instruments, and hedging programs; Keeping current on new relevant US GAAP requirements; Assisting with the implementation of new US GAAP pronouncements and formulating relevant accounting policies; Participation in future implementation efforts around IRFS framework
Other requirements: 5-8 years in Public Accounting (Financial Services Industry exposure a strong plus) or 6-9 years of work experience in the financial services industry; Strong command of the US GAAP framework associated with: consolidation, derivatives, hedge accounting, transfer of financial assets, fair valuation of financial instruments; CPA license a strong plus.
See the entire job description over at the GC Career Center and visit the main page for all your job search needs.
Web CPA: McGladrey & Pullen Partners Vote to Go Back to H&R Block, RSM McGladrey
Well, sons and daughter of McGladrey, the reconciliation is done. Your feuding parental firms will be engaging in some awkward corporate make-up sex:
An arbitration ruling, which was handed down Nov. 24, favors H&R Block and RSM, enforcing the restrictive labor covenants involving employees of the two firms.
About 650 McGladrey partners began meeting in Orlando, Fla., on Wednesday and voted Thursday to approve the agreement after the M&P board, including managing partner Dave Scudder, had earlier approved the deal.
The whole thing has been pretty ugly as far as we can tell and according to Allan Koltin, CEO of PDI Global, a consultancy firm that advised both firms, M&P didn’t have any choice but to go back:
The enforcement of some of the terms of the original agreement by the arbitrator seems to have forced M&P’s hand. “Once the arbitration ruling came out and McGladrey & Pullen found they were prohibited from providing tax services for a couple of years, that was the end right there,” said Koltin. “There was no way they could be independent as an audit-only firm and compete effectively without also providing tax services.”
The original non-solicitation agreement said that M&P could not provide services such as tax preparation for between 18 and 24 months if it terminated the agreement, effectively limiting the firm to audit services. “Once they saw the writing on the wall, it became obvious that the two sides were going to come together,” said Koltin.
So this appears to be awkward. Did M&P think this through or even read the non-solicitation agreement before they told H&RB/RSM to drop dead? Did they legitimately think they could get by just offering the audit services for two years?
While we were rooting for the firms to make nice, there may be some of you that are less enthusiastic about the House of McGladrey being all under one roof again. We’d like to hear from the troops on the ground about this whole thing. Feel free to get in touch or just put it out there in the comments.
McGladrey & Pullen Partners Vote to Reconcile with Block [Web CPA]
UPDATE: The full press release can be seen here.
Your Nominations for ‘Accountants of the Decade’ Are Now Being Accepted
Friends, you may not be aware of it but the current decade is closing fast. This means several things, a few of which are worth mentioning here: 1) Many of you will embark on this new decade inching ever closer to your first mid-life crisis 2) Many of you will enter a new decade and still not have your CPA despite posing as one for the last 3 – 5 years. 3) Ubiquitous “[insert anything here] of the decade” lists.
Now you may also be aware how we here at GC feel about lists. Not typically a fan. However, considering the historical significance of the end of the ‘0Xs (what the hell is this decade called?) and the fact that we don’t feel like working too hard today, we will now request your nominations for the “Accountants of the Decade”.
We’re looking for those CFOs, CPAs, etc. etc. that defined the decade for you, for better for worse. One possible nom is the man you see pictured here, the oddly stunning yet diabolical Andy Fastow. If you’re not familiar with AF, then please slap yourself.
A few things: 1) No obscure nominations. Your Intermediate Accounting Prof who was constantly eating star mints and wore warmup pants to class doesn’t count. Celebrity CPA Review instructors, on the other hand, are acceptable. 2) CFOs in form but not in substance are acceptable (e.g. Erin Callan). 3) Don’t blow this off. It’s important.
So fire away, and feel free to make an argument. If you’ve got a favorite picture with your nomination, kindly pass it along and we’ll include it if we end up putting this to a vote. We’ve got less than three weeks until the ball drops so get on it.
Preliminary Analytics | 12.11.09
• Deloitte appoints new climate change chief – Kiwi Nick Main is the new HMFIC. [Accountancy Age]
• Loopholes Lurk in Bank Bill – “Referring to USAA, House Financial Services Committee Chairman Barney Frank (D., Mass.) said the House has ‘been supportive of them and the US military. There’s no remote prospect of them being a problem.’ Lawmakers wouldn’t identify the lawmaker who requested the exemption.” [WSJ]
• Boeing says Dreamliner could fly on Dec 15 – Just feeling it out. No word on the debut with crying babies and obese passengers. [Reuters]
• Craigslist Founder Says eBay Reneged on Promises – Specifically you, Meg Whitman. [AP via NYT]