Articles Posted in Accounting Fraud

JPMorgan Chase Agrees To Pay $200 Million and Admits Wrongdoing to Settle SEC Charges – Firm Must Pay $920 Million in Total Penalties in Global Settlement The Securities and Exchange Commission (Commission) recently charged JPMorgan Chase & Co. with misstating financial results and lacking effective internal controls to detect and prevent its traders from fraudulently…

Securities and Exchange Commission Charges Operator of Miami-Dade County’s Largest Hospital with Misleading Investors about Financial Condition The Securities and Exchange Commission (“Commission”) recently charged the operator of the largest hospital in Miami-Dade County with misleading investors about the extent of its deteriorating financial condition prior to an $83 million bond offering. An SEC investigation…

Hedge Funds – Investment Loss and Mismanagement Federal and State Litigation Attorney: “Hedge fund” is a general, non-legal term used to describe private, unregistered investment pools that traditionally have been limited to sophisticated, wealthy investors. Hedge funds are not mutual funds and, as such, are not subject to the numerous regulations that apply to mutual…

Cash Basis of Accounting, Accrual Method of Accounting and Modified Cash Basis: South Florida Accounting Negligence and Breach of Contract Commerical Litigation Attorney, Russell L. Forkey, Esq. The Cash Basis accounting method recognizes revenues when cash is received and recognizes expenses when cash is paid out. In contrast, the Accrual Method of accounting recognizes revenues…

Florida Accounting Fraud and Accounting Negligence Litigation Attorney: Court Enters Final Judgments against JBI, Inc. and Former Officer in Accounting Fraud Case The Securities and Exchange Commission announced that a Massachusetts federal court entered final judgments by consent on June 26, 2013 and March 20, 2013, respectively, against John W. Bordynuik (“Bordynuik”) and JBI, Inc.…

China-Based Company and Former CFO to Pay Penalties for Disclosure and Accounting Violations The Securities and Exchange Commission recently charged a China-based petrochemical company and its former chief financial officer with accounting and disclosure violations, and they agreed to pay more than $1 million combined to settle the charges. The SEC alleges that Keyuan Petrochemicals,…

Securities and Exchange Commission v. Edward J. Woodard, Jr., Cynthia A. Sabol, CPA and Stephen G. Fields, Civil Action No. 2:13cv16 (Eastern District of Virginia, Complaint filed January 9, 2013) SEC Charges Three Former Senior Officers of Commonwealth Bank With Understating Losses and Material Misstatements During Financial Crisis The Securities and Exchange Commission today charged…