Leon Chan just couldn’t stop taking photos up girls’ skirts. This dude, who used to […]
Accountants Behaving Badly: No Jail for PwC Peeper, Guilty Plea for Embezzler, Catholic Church Crook
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Here’s a roundup of some of the very bad things accountants have done over the […]
Former EY Employee Who Liked Secretly Filming People in the Bathroom Given Four Years to Think About His Choices
A judge in London sentenced a former EY employee to four years in prison for […]
Omaha accountant, Clarence "Fred" Weber appears to have a problem. First off, he was sending […]
“Wally” Bock isn’t sure what you want from him, MSNBC, New York Post, Daily News et al. He’s trying to run a half billion dollar fortune of a lady who doesn’t want to leave the friendly confines of Beth Israel Hospital.
He can’t be bothered with trivial matters like whether Irving Kamsler pleaded guilty to sending porn to adolescent girls. And besides! It wasn’t even his call.
In his statement to appease the haters, Bock wrote, “I was never in any position to fire Mr. Kamsler; that decision was Ms. Clark’s alone. I did insist that he disclose his conviction to Ms. Clark, which I understood he did.”
How about that for an awkward conversation? It’s not like going door to door in North Hollywood telling everyone you’re a pederast but explaining to a 100+ woman that you sent porn to some teenage girls might make for a few uncomfortable silences. But Bock claims Clark was cool with it, so you best not get all judgey about it.
Plus, he got to keep his CPA. Although the past has show that the New York Office of Professional Discipline isn’t really too concerned with timely action.
Maybe! That’s what the Manhattan’s DA office would like to know.
In a story that Dick Wolf is certain to get ahold of, an accountant – who is admitted perv – and a lawyer are being “probed” for their management of a wealthy heiress’s fortune.
You see, Irving Kamsler – the accountant – apparently got bored managing multi-millions for copper heiress Huguette Clark and got to poking around on the Internet. He ended up pleading guilty in 2008 and was sentenced to probation, “for engaging in sexual Web chats with detectives whom he believed were girls as young as 13 and sending porn to one of them,” (plot-line twist!).
Presumably Kamsler was out of hobbies and he refocused his energy on managing the money of Ms. Clark.
Kamsler, along with Clark’s attorney, Wallace Bock, have been overlooking the heiress’s fortune for years but now the Manhattan District Attorney’s office was curious why the “elderly eccentric” had spent ‘forever’ (according to one aide) at Beth Israel hospital.
This all came about after MSNBC got to wondering aloud about Huguette’s whereabouts. More or less asking, “Why on Earth is she in a dingy hospital (have you been to Beth Israel?) and not in her 42-room 5th Ave. apartment or sprawling estates in Santa Barbara or Connecticut?”
The DA’s probe into whether Kamsler and Bock were properly managing Clark’s money is ongoing but if you’re going by Kamsler’s looks alone, you can easily conclude that they’ve got every reason to be suspicious.
So for those of you that aren’t too fashion conscious, you probably don’t the name Dov Charney. He’s the Chairman and CEO of American Apparel and you’d be hard pressed to find something in one of his stores that qualify under your firm’s dress code.
Nevertheless! AA is a publicly traded company and is subje ities laws as everyone else. Last year they opted to drop Marcum as their auditor for Deloitte. One year later, the firm has apparently had all they can stand of AA because they resigned today, citing possibly unreliable financial statements for 2009, sending the company’s stock reeling.
The 8-K has the usual language that you would expect from a typical auditor/client break-up but here are the gory details for those you that enjoy that sort of thing (citations omitted and extra fun stuff is bolded):
During the period from April 3, 2009 through July 22, 2010, there were no “reportable events” except that (i) in Deloitte’s report dated March 31, 2010 (which was included in the 2009 Form 10-K) on the Company’s internal control over financial reporting as of December 31, 2009, Deloitte identified material weaknesses in internal control over financial reporting related to the control environment and to the financial closing and reporting process, which are further described under Item 9A in the Company’s 2009 Form 10-K, and advised that the Company has not maintained effective internal control over financial reporting as of December 31, 2009; and (ii) Deloitte advised the Company that certain information has come to Deloitte’s attention, that if further investigated may materially impact the reliability of either its previously issued audit report or the underlying consolidated financial statements for the year ended December 31, 2009 included in the Company’s 2009 Form 10-K. Deloitte has requested that the Company provide Deloitte with the additional information Deloitte believes is necessary to review before the Company and Deloitte can reach any conclusions as to the reliability of the previously issued consolidated financial statements for the year ended December 31, 2009 and auditors’ report thereon.
As we mentioned, this has spooked plenty of people, including Ed Yruma an analyst at KeyBanc quoted by Bloomberg in a letter to investors, “The company has struggled since its IPO with both its internal controls and its ability to file SEC filings on a timely basis. An ability to file SEC filings on a timely basis has been an ongoing issue.”
Back to the superficial. Dov Charney is, what you might call, a character. Here’s a brief chat we had with Nick, Breaking Media web developer and occasional contributor to our sister site Fashionista:
me: When i say the name
your response is…
Deloitte’s letter to the SEC is brief and makes no mention about the plethora of models not wearing pants or Dov judging the young auditors’ hot or not-ness, so that likely wasn’t part of the problem. Anyhow, AA ran straight back to Marcum who might be more comfortable with, what we imagine to be, an interesting work environment.
American Apparel Falls After Deloitte Resigns as Accountant [Bloomberg BusinessWeek]
Ernst & Young had a nice little buffer zone from the other Big 4 in their London office until PricewaterhouseCoopers decided they’d set up camp next door and now the two firms are strategerizing.
P. Dubs is finishing up the construction on their new digs and the Telegraph reports that “At their closest point the two offices are roughly 10 [meters] apart.” This proximity (not to mention the obnoxious tendency of Big 4 types to be competitive just for the sake of being competitive) has apparently led to rampant paranoia at the two firms about spying.
Getting up in E&Y’s shit seems to be bean counting as usual at PwC, as this latest move more or less correlates with the alleged poaching of 20 E&Y partners in the Middle East.
The Telegraph is insinuating hilarious war-esque undertones, saying, “First blood in the battle has gone to PwC with the installation of blinds that close automatically whenever audio-visual presentation equipment is switched on and an office layout that ensures no computer screens face windows.” The obvious concern being that PwC’s secret “we provide the absolute best client service” plan would be imitated by E&Y, which would mean an all-out war.
However, the real concern should be voyeurs scoping out the office sexcapades. As we’ve mused in the past, the odds of fornication for accountants are slim as it is and work relationships are a convenient option. With this development, some E&Y and PwC minions will be denied the opportunity for office sex. This is not as much of a problem for the exhibitionists at the firm, however, that cross section is likely small.
E&Y is reportedly “evaluating a number of options,” to combat P. Dubs’ tactics, which may or may not include the following:
A) A group mooning that will involve the most portly E&Y employees.
B) Placing inflatable bozos in the windows.
C) Draping the entire building with a photo of Susan Boyle in Beckham’s PwC undies.
D) Your idea.
This is the last thing the IRS needs. Well, maybe next-to-last.
“An IRS employee is charged with having child pornography on a laptop computer that police said he left in a garbage bag in a wooded area in Sterling Heights. Alan E. Erickson, 45, of Sterling Heights is charged with one count of using a computer to commit a crime and five counts of possession of child sexually abusive material, officials said.”
Dumping a laptop in the woods? And child porn to boot? Jesus. You thought the death threats against IRS agents were bad before…
IRS employee charged in porn case [Detroit Free Press]
Image source: Sterling Heights Police via DFP
Tax Court: “…religious, charitable, scientific…literary, or educational purposes…” Doesn’t Mean “Sex with Kids.”
Private charitable efforts are as American as can be. Toqueville noted our vigorous civil society back in the early days:
Americans of all ages, all conditions, and all dispositions constantly form associations. They have not only commercial and manufacturing companies, in which all take part, but associations of a thousand other kinds, religious, moral, serious, futile, general or restricted, enormous or diminutive. The Americans make associations to give entertainments, to found seminaries, to build inns, to construct churches, to diffuse books, to send missionaries to the antipodes; in this manner they found hospitals, prisons, and schools. If it is proposed to inculcate some truth or to foster some feeling by the encouragement of a great example, they form a society.
The tax law recognizes this all-American tendency in Sec. 501(c)(3), which grants a tax exemption for associations with the proper purpose, like those in the headlines.
So along comes Eddie C. Risdal from Iowa. Eddie wanted tax exemption for a cause dear to his heart, “Mysteryboy Incorporation”:
MENBERS SHALL NOT PROMOOT, BUT WILL NOT DENY THE FACT OF PAST & PRESENT HUMAN HISTORY THAT HUMANKIND FROM YOUTH ON-THROUGH ADULTHOOD HAS IN MAJORITY BEEN SEXUAL ACTIVE WHETHER BE IN PROMISIOUS, DEVENTCY, OR EXPERIMENTATION SEXUAL ACTS, AND MENBERS WILL PROMOOT SAFE SEX EDUCATION AND SAY NO TO ILLEGAL DRUGS USES UNTIL THE EVENT THAT THEY BECOME LEGALIZED, MENBERS WILL PROMOOT FEED THE HUNGARY, SUEICIDE PREVENTION AND ANY AMENDED PROGRAMS AS THE INCORPORATION FINDS SUCH A PUBLIC NEED TO ADD SUCH PROGRAMS THAT WILL BENEFIT SOCIETY AT LARGE.
The IRS somehow found this suspicious and asked a few more questions. They came to this conclusion:
The facts of this case show that Mysteryboy Incorporation was organized and operating primarily for influencing a change in the laws concerning sexual exploitation of children.
The Tax Court found that cause a bit too close to Eddie’s heart (my emphasis):
The activities in which petitioner proposes to engage seek to decriminalize the type of behavior (1) for which Mr. Risdal, petitioner’s founder, sole director, sole officer, and executive director, was convicted and incarcerated and (2) which formed the basis for his having been adjudicated a sexually violent predator subject to civil commitment under Iowa Code Ann. ch. 229A (West 2006).10 On the record before us, we find that petitioner has failed to show that those activities will not provide Mr. Risdal with a platform from which he will seek to legitimize the illegal behaviors in which he has engaged, for which he was convicted, and which formed the basis on which he is civilly committed under the laws of the State of Iowa. On that record, we find that petitioner has failed to carry its burden of establishing that its proposed activities will not further the private interests of Mr. Risdal in violation of section 501(c)(3) and the regulations thereunder.
The moral? Civil society ends where civil commitment begins.
Joe Kristan is a tax shareholder for Roth & Company, a Des Moines, Iowa CPA firm, where he works with closely-held businesses and their owners. Prior to helping start Roth & Company, he worked for two of what are now the Final Four CPA firms. He writes the Tax Update Blog and is available for seminars, first communions, Bar Mitzvahs, etc. You can see all his posts for GC here.
No matter how good this guy was at preparing tax returns, we recommend finding someone else, if you’re in the Mesa, AZ area:
Jess Alan Skousen was arrested at his Mesa accounting business Wednesday for allegedly having illegal child pornography on his laptop computer
Mesa Police Department spokesman Ed Wessing sai [sic] Skousen, 40, was arrested after his wife found sexual images of children on his computer.
Ouch. The wife turned him in. Can’t say that we blame her.
Wessing identified Skousen’s business as Self Tax Preparation on Stapley Road. The pictures found on the computer include those of children between ages of 2 and 15, some in sexual poses, according to Wessing. The Arizona Corporation Commission lists a number accounting, tax and other businesses under Skousen’s name.
Eight year-olds, Dude.
Mesa tax preparer arrested on child porn charges [Phoenix Business Journal]