Accountants Behaving Badly

Accountants Behaving Badly: Drugs and Sex Trafficking, Bookkeeper Busted for Embezzlement, Visa Fraud

Plus, a bunch of tax preparers are going to be spending some quality time in jail. Kentucky man charged with sex trafficking, drug conspiracy [Associated Press] Mark Milslagle, a former Kentucky accountant accused of paying for sex with young women who were addicted to drugs, faces federal conspiracy charges. Milslagle, 49, was charged on Nov. […]

Accountants Behaving Badly: Jailed Over Ponzi Scheme, Firm Fined In Pot Bust, Embezzlement Admission

Plus, tax preparers plead guilty to preparing fraudulent returns, and the owner of a tax preparation business failed to file his own taxes. Gambling accountant gets 14 years for $396M Ponzi scheme [Law360] Texas CPA Jay Ledford will serve 14 years in federal prison for his supporting role in a Ponzi scheme that netted $396 […]

Accountants Behaving Badly: Ripping Off Olympian, Ex-IRS Employee Jailed, Stealing From Your Own Firm

Plus, a Massachusetts accountant pleads guilty to tax fraud, and a Toronto accountant gets prison time for stealing from charity. Oregon CPA who ripped off Olympic snowboarder and spent trust fund of porn shop heirs headed to prison [The Oregonian] Nathan Wheeler was sentenced to four years and three months in federal prison on Oct. […]

Accountants Behaving Badly: Defrauding the IRS, Stealing From School, Drunken Leadfoot

Plus, an accountant allegedly stole thousands from an ice rink construction company, and a male tax preparer who pretended to be a woman named Alyssa Jean Pipes is accused of screwing over his clients. Former state senator’s accountant convicted of tax fraud [Justice Department] John Nardozzi, an accountant for former Massachusetts senator Brian A. Joyce, was […]

Accountants Behaving Badly: Train Station Turd, College Crook, Fake CPA’s Fraud

Plus, a New South Wales accountant got jail time for stealing moola from clients, and a Texas tax preparer is going to prison for a while for defrauding the U.S. Drunk trainee accountant who pushed man onto Tube tracks has sentence increased [The Times] Mathuram Muthuraja, a trainee accountant who drunkenly pushed another man onto […]

Accountants Behaving Badly: Rogue Tax Preparers, Suzuki Theft, Kiddie Porn

Plus, Filipino accountant gets jail time for embezzlement, and a CFO will spend time in a Canadian prison for stealing money to fund her opioid addiction. Former New Haven tax preparer pleads guilty [Justice Department] Devon Williams pleaded guilty on Oct. 2 to one count of aiding and assisting the preparation of a false tax […]

Accountants Behaving Badly: Big 4 Scammer, Dude Got His Nads Cut Off, Refund Stealing

Plus, accountant sentenced to seven years in jail for fraud, and church-swindling accountant gets sentenced to three months in prison. Accountant tricked girlfriend out of thousands in cancer scam [Accountancy Daily] Badal Arun Hindocha, who cheated his Internet girlfriend out of £4,300 by claiming he was dying from stomach cancer, received a suspended jail sentence […]

Accountants Behaving Badly: Naughty Kitty, Fancy Fraud, Cokehead Jailed

Plus, Colorado accountant arrested in child sex sting, and a UNLV accounting grad student is accused of killing ex-girlfriend. Essex accountant admits fraud against Cats production firm [BBC] Scott Hiskey, a U.K. accountant who worked for Monumental Pictures, pleaded guilty on Sept. 17 to a charge of fraud by abuse of position after admitting to […]

Accountants Behaving Badly: EY Gal Pleads Guilty to Fraud, PwCer Fired for Upskirt Pics, Grand Theft Guilt

Plus, wrongful death lawsuit filed against TV show accountant, and Scottish accountant jailed for protecting crime gang member. EY employee conspires in £76k staff fraud [Accountancy Daily] EY Executive Assistant Sukhbir Mawkin and her husband, Anil Mawkin, were sentenced on Sept. 11 for carrying out a £76,000 over four years, using credit card and personal […]

Accountants Behaving Badly: Defrauding Clients, CPA Ponzi Scheme, Wire Fraud Is a No-No

Plus, accountant jailed for lavish lifestyle fraud, and life in prison and hard labor isn’t a horrible enough sentence for one Zambian accountant. New Mexico CPA suspected of defrauding couple out of $1 million [Las Cruces Sun News] Thomas Laws was arrested on Aug. 26 for allegedly defrauding two clients of more than $1 million […]

Accountants Behaving Badly: FUBARed Over FBARs, Fake Returns, Landscaping Larceny

You are probably having a better Labor Day than these six accountants. Former CPA indicted for failing to report foreign bank accounts and filing false documents with the IRS [Justice Department] Ex-CPA Brian Booker was charged by a federal grand jury on Aug. 27 with failing to file Reports of Foreign Bank and Financial Accounts […]

Accountants Behaving Badly: Deadly Lunch Breaks, Embezzler Gets 10 Years, Church Swindler

Plus, tax accountant pleads guilty to scamming clients and a movie production accountant is accused of stealing money from his employer. Police: Lindenwold man’s ‘demeanor’ changed after co-worker’s murder [Cherry Hill Courier-Post] Kenneth Saal, a staff accountant at Engine Group in Princeton, NJ, since July 2016, was taken into custody on a murder charge at […]

Accountants Behaving Badly: Stealing From Nonprofit, Stealing From Restaurant, Stealing From Furniture Business

Plus, CPA for reality television stars indicted and accountant arrested for stalking woman. Accounting coordinator at non-profit facing fraud charges for embezzling $321K in organization funds [Justice Department] Danielle Strother-Rush, an accounting coordinator at a Pittsburgh-area nonprofit organization, was indicted by a federal grand jury in Pittsburgh Aug. 6 on charges of bank fraud and […]

Accountants Behaving Badly: Fraudsters Go to Court and Prison Time For Stalking Ex

Plus, a Maryland CPA and a California CPA both get jail time for embezzlement. Newton accountant charged with wire fraud and filling false tax return [U.S. Justice Department] Jeffrey Kellem, an accountant from Newton, MA, was charged with four counts of wire fraud and one count of filing a false tax return on Aug. 5 […]

Accountants Behaving Badly: Ex-CFO Busted For Embezzlement; Fraudulent Timesheets; Ripping Off Client

Plus, an accountant is accused of keeping a domestic slave at his house and an accounting officer is going to jail for swindling his firm out of £3 million. Former Walton Beverage financial officer sent to jail for embezzling company funds [The Bellingham Herald] David McLeod, CPA, the former CFO of Walton Beverage in Ferndale, […]

Accountants Behaving Badly: Tax Fraud, ‘Hopelessly Conflicted’ About Ethics, RICO Suave

Let’s see who made the news last week for conduct unbecoming of an accountant. Westchester tax accountant sentenced for tax fraud [Patch] Yorktown Heights, NY-based accountant Steve Sabba was sentenced to five years’ probation on July 18 after he pleaded guilty to third-degree criminal tax fraud and fourth-degree criminal tax fraud, both felonies, in February. […]

Accountants Behaving Badly: Insider Trading, Poker Player Gone Bad, Sex Toy Assault

Was there a full moon on July 10? Accountants were found to be doing bad things on that day. Ex-Illumina accountant accused of insider trading [CFO] Martha Bustos, a former accountant for Illumina, was charged on July 10 with leaking the biotech company’s quarterly results to a close friend as part of an insider trading […]

BDO Puerto Rico Managing Partner Resigns After Indictment In Massive Corruption Scandal

The words “managing partner” and “corruption” used in the same sentence is never a good thing, as we found out in the KPMG/PCAOB information leak scandal. But while there was no scheme to steal confidential information from an audit regulator going on in Puerto Rico, there were allegations of money laundering, theft, and wire fraud […]

Ex-KPMG Australia Senior Partner Avoids Prison For Being Too Stabby with a Campaign Volunteer

Even though he was convicted of two counts of common assault in court on July 4, former KPMG Australia partner Stavros “Steven” Economides was given a get-out-of-jail-free card. Economides, 62, who spent more than 30 years as a partner at KPMG, was sentenced to a 12-month good behavior bond after admitting to thrusting a corkscrew […]

Accountants Behaving Badly: Form 941 Shenanigans, Embezzlement, Stealing From Mom

Here are some accountants who failed badly at being a trusted advisor. Delaware County accountant charged with multiple tax offenses [Justice Department] Myles Hannigan, an accountant from Newtown Square, PA, was charged by the U.S. Attorney’s Office for the Eastern District of Pennsylvania on July 3 with one count of obstructing the due administration of […]

Accountants Behaving Badly: Alyssa Milano Lawsuit Settled, Money Laundering, Revenge=Jail Time

Here are some accountants who were up to no good last week. Alyssa Milano settles $10 million suit with former accountant [Variety] Actress Alyssa Milano has settled a legal battle with her former accountant Kenneth Hellie as the case was about to go to trial. Terms of the settlement were not disclosed. Milano and her husband, agent […]

According to This Infographic, You Guys Will Try to Expense Pretty Much Anything

One of the most fun things about business travel is seeing what you can get away with come expense report time. We’ve all taken liberties with our employer’s expense policy, although things I’ve put on expense reports would probably be considered lame: a pack of smokes, a four-pack of Surly Furious IPA, a bomber of […]

Accountant In College Admissions Scandal Will Find Out In October When He’ll Get Admission to Prison

As expected, Steven Masera, the former accountant of the bogus nonprofit and college consulting company led by Rick Singer, pleaded guilty to one count of conspiracy to commit racketeering today in Boston federal court for his role in the nation’s largest college admissions bribery scandal, USA Today reported. Masera, 69, is scheduled to find out […]

Former Marks Paneth Partner Admits to Screwing Investors Out of $2 Million

Steven Henning, CPA, a former partner-in-charge of advisory services at New York City-based Marks Paneth, could have as long as 20 years to think about his choices: Steven Henning pled guilty today [June 24] to participating in two wire fraud schemes. In the first, he falsely claimed to have entered into multimillion-dollar intellectual property deals […]

Accountants Behaving Badly: Update on Ex-Wife Basher, Bank Fraud Guilty Plea, Sexual Assault

Let’s see who in the accounting profession got into trouble with the law over the past week or so. Asian accountant, 51, who smashed his ex-wife’s head against a car and called her a ‘bacon basher’ after she began dating a white man is ordered to pay her £150 compensation [Daily Mail] Here’s an update […]

Accountants Behaving Badly: X Factor Winner’s Ex-Accountant Banned, Drunk Driving, Theft

Yes, there actually are accountants who behave badly who don’t work at KPMG U.S. or Deloitte U.K.: X Factor star’s accountant is banned from his profession [Essex Echo] Here’s an update to an article Adrienne wrote earlier this year: A south Essex accountant who defrauded X Factor winner James Arthur of almost £600,000 has been […]

Gambling Addict Accountant Who Expensed Fake Uber Receipts Thought He Could Pull a Fast One on Deloitte

A former Deloitte accountant in the U.K. pulled a Houdini and somehow escaped prison time after he tried to screw the firm out of £95,540 ($121,202) by expensing bogus ride-share receipts over a three-year period to fund a secret gambling addiction. Gurgyan Singh Kaley pleaded guilty to two charges of fraud by abuse of position. […]

Accountants Behaving Badly: Lots of Theft, Ponzi Scheme, Tax Evasion

Here’s a roundup of some bad stuff accountants did or were accused of doing over the past week or so. Auto shop accountant charged with stealing over $175K from employer [Chicago Sun-Times] Rungnapa Correia is accused of stealing more than $175,000 from a Bensenville, IL, auto repair shop she used to work at as an […]

Man Who Was Arrested For Repeatedly Stabbing a Hiker Near Los Angeles Apparently Works at BDO

We got a tip the other day that said an employee of one of the top accounting firms in the U.S. got into some trouble with the law last week: Look into the stabbing from Altedena on May 29th. The alleged suspect, Kristopher Brown works as a Senior for BDO Los Angeles. He’s currently in […]

Accountants Behaving Badly: Fun with Fridge Magnets, College Admissions Scam, That’s No Man, Baby

Here’s a roundup of some of the very bad things accountants have done over the past week or two. Nxivm accountant spelled out dirty messages with colorful fridge magnets [New York Post] The racketeering and sex trafficking trial of creepy old guy Keith Raniere, the leader of the sex cult Nxivm, is currently going on […]

Accountants Behaving Badly: Beating Up Ex-Wife, Tax Crimes, Stealing Lots of Money

Spend some time this Memorial Day remembering those who died serving our country and reading about how awful some people in your profession really are. Asian accountant smashed ex-wife’s head against a car outside David Lloyd centre and called her a ‘bacon basher’ after she began dating a white man who worked at their lettings […]

Accountants Behaving Badly: Busted with Meth, Stealing From Clients, Bank Fraud

A look at the best of the worst accountant malfeasance around the globe over the past week or so. British accountant, 47, faces the death penalty in the Philippines ‘after being caught with meth in a drugs raid’ [Daily Mail] Philip Joseph was in a flat with two locals when police burst through the door […]

Accountants Behaving Badly: Murder, Webcam Models, Defrauding Celebrities

It was a bad week for accountants from the U.K. with the first name of Andrew. AFC Fylde accountant blew £240,000 on sex, drink and drugs [BBC News] A semi-professional socc … I mean, football team in England nearly went belly-up because its finance director, Andrew Barnbrook, stole thousands of pounds from the team to […]

Bad MLB Pitcher-Turned-Bad Accountant Fesses Up to Stealing $145,000 From Employer

The Minnesota Star Tribune has an update on Ben Hendrickson, the former Milwaukee Brewers pitcher whose post-baseball accounting career took a dubious turn while employed by Floors Northwest in Fridley, MN. A Twin Cities man who briefly pitched in the Twins organization and had two short stints as a Major Leaguer has pleaded guilty after […]

Accountants Behaving Badly: Strangling Wife, Stealing Money From a Band, Shopping Spree on Company’s Dime

A look at the best of the worst accountant malfeasance around the globe over the past month or so. CA throttles wife to death, tries to pass it off as suicide, arrested [Times of India] Here is a disturbing story out of India: Jaiveer Singh, a 52-year-old chartered accountant, was arrested on May 1 for allegedly […]

Dorky Accountant Robbed His Employer to Buy Hookers and Blow Because Some Dude at the Office Made Fun of Him

Y’all ready to meet a real bad ass? You sure? I’m not sure you can take this. Darren Carvill, 38, is headed to jail after a “weekend of madness” which included hookers and blow funded by approximately £170,000 ($220,000 USD) he stole from his employer, a car servicing company. The Sun reports: A source revealed: […]

Wisconsin CPA Who Fatally Struck Illinois State Trooper with His Car Pleads Not Guilty to Reckless Homicide

Scott Larsen appeared in a Skokie, Ill. courtroom on March 11, where the Wisconsin accountant pleaded not guilty to felony reckless homicide charges in the January death of Illinois State Trooper Christopher Lambert. According to a Chicago Tribune report, Larsen, 61, also pleaded not guilty to violating Scott’s Law, which increases potential penalties for motorists […]

Zaza Pachulia’s Ex-Accountant Is Going to Jail But Not Until After April 30 Because Busy Season

You know it’s tax season when an accountant who was sentenced to 30 months in federal prison for identity theft is just too busy to go to jail right now. Such is the case for Randy Usow of Mequon, Wis., who agreed to plead guilty to one count of theft of government property and one […]

Hopefully, Wisconsin CPA Scott Larsen Will Never Get Behind the Wheel of a Car Ever Again

Wisconsin accountant Scott Larsen appeared in a courtroom in Skokie, Ill. on Jan. 29, where a judge set his bond at $250,000 on charges of felony reckless homicide and prohibited him from driving if he posted bond. This is a good thing for everyone because Larsen fatally struck an Illinois State Police trooper with his […]

Wisconsin Accountant Charged with Reckless Homicide in the Death of Illinois State Trooper

If you live in the Chicago area like I do, you’ve by now heard or read about the death of Illinois State Trooper Christopher Lambert, who was struck by a vehicle on an Illinois tollway on Jan. 12 after he got out of his patrol car to assist drivers involved in an accident. Well, we […]

James Arthur

Crappy Gambler Who Also Happened to Be an Accountant Jailed for Stealing From X Factor Winner

Not to show my ignint ‘Murican here but I have to admit I don’t know dick about X Factor. I think those one dudes were on there, you know, the ones who looked like skinny, middle-aged lesbians led by a bootleg Mick Jagger. To be fair, I can’t name an American Idol contestant since the […]

Scott Vetere

(UPDATE) Married Ex-KPMG Recruiter and Gym Coach Busted For Banging Young Gymnast in a Car

Whew, you guys, this one is … awkward. Scott Vetere is a 39-year-old father of three from Michigan who serves as assistant coach for the University of Michigan women’s gymnastics team, or at least he did until he resigned Oct. 15. His resignation came after Vetere was caught getting it on with an 18-year-old female […]

WTF? CPA Accused of Stealing Over $93,000 from Girl Scouts, Cancer Center

Through the years, Going Concern has chronicled accountants and finance chiefs getting caught doing really shitty things. But if this accountant is found guilty of the charges levied against her, this has to rank among the shittiest of the shitty. From the Los Angeles Daily News: A certified public accountant charged with embezzling more than […]

#WednesdayWisdom: Money Laundering Is Not a Specialization CPAs Should Pursue

Laundering your blue Oxford dress shirts, blouses, gray trousers, and fleece vests, good. Laundering money, bad. From the Times of San Diego: A San Diego-based certified public accountant was sentenced Tuesday to 21 months in federal prison for his role in an international drug trafficking, gambling and money laundering organization led by former University of […]

NBA Player Zaza Pachulia’s Former Accountant Pleads Guilty to Identity Theft, Probably Never Will Have Basketball Clients Again

In dubious accountant news, Randy Usow of Mequon, Wis., has agreed to plead guilty to one count of theft of government property and one count of identity theft after stealing more than $800,000 by submitting fraudulent tax returns in the name of NBA player Zaza Pachulia and his wife, the Milwaukee Journal Sentinel reported. Pachulia, […]

Ex-Manafort Accountant Given the Pink Slip After Testifying

We can’t say we’re shocked by this turn of events. From Bloomberg: Paul Manafort’s former accountant was fired from a Virginia firm after she told the court she was aware that Manafort’s tax returns contained false information. Cindy Laporta testified Friday [Aug. 3] in the government’s case against the former Trump campaign chairman, saying she […]

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Accounting News Roundup: Tax Reform Glitches; KPMG and GE; Sexual Harassment | 03.13.18

G.O.P. Rushed to Pass Tax Overhaul. Now It May Need to Be Altered. [NYT] There are a number of quirks in the new tax law “that disadvantage certain farmers, hurt restaurateurs and retailers and could balloon the tax bills of large multinational corporations,” and that has business owners and executives worked up. Meanwhile, many fixes […]

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Accounting News Roundup: AICPA Lobbying; Cisco Repats Some Cash; Stealing from Cub Scouts | 02.15.18

AICPA CEO Melancon sheds light on tax reform lobbying [AT] If you were worried that AICPA President, CEO, and curling enthusiast Barry Melancon didn’t carry water for large accounting firms during the tax reform debate, rest easy: The AICPA was unable to dissuade lawmakers from excluding large accounting firms from the 20 percent pass-through deduction […]

Accounting News Roundup: Delaware LLCs; Bitcoin Gains; Fake IRS Agents | 02.14.18

New Hedge-Fund Tax Dodge Triggers Wild Rush Back Into Delaware [Bloomberg] In the new tax bill, Congress thought it could stick it to private equity and hedge fund managers by requiring them to hold investments for three years in order to have their carried interest income taxed at the capital gains rate. Private equity funds […]

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Accounting News Roundup: Big 4 Not Obliterating Law Conferences…Yet | 02.12.18

Twilight Of The Law Firms: The Big 4 Are Poised To Conquer The Legal Landscape [ATL] One thing we discuss around here with increasing regularity is Big 4 firms elbowing their way into the legal world unencumbered. Joe Patrice writes a good overview at Above the Law, noting that at a recent legal conference, “the […]

Accounting News Roundup: PwC’s New Envelope Safeguards and Changes to State Tax Rates | 01.23.18

Accounting firm adds 6 new rules to prevent Oscars envelope gaffe [AP] The Academy Award nominations were announced this morning, but PwC’s Tim Ryan had a little reveal of his own, sharing the new rules the firm put in place to avoid a SALY #EnvelopeGate. Naturally, the new rules center around “envelope rituals” that should […]

Accounting News Roundup: A Landing Pad for Retired Accountants Who Want to Keep Working | 01.18.18

One Accounting Firm Wants to Hire Retirees [WSJ] PKF O’Connor Davies has 24 employees who hit mandatory retirement age at other accounting firms, including one, in his 70s, who helped jumpstart their international tax practice. Mandatory retirement age policies at accounting firms, most notably PwC, have gotten the attention of the Equal Employment Opportunity Commission, […]

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Accounting News Roundup: South Africa’s Probe of KPMG Is Moving Along | 01.12.18

Ed. note: ANR will be off on Monday to observe Martin Luther King Jr. Day. South Africa’s Audit Regulator Says Part of KPMG Probe Nearing Completion [Reuters] South Africa’s Independent Regulatory Board for Auditors (IRBA) announced that one part of the investigation into KPMG’s work for the Gupta family is “nearing completion” and the rest […]

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Accounting News Roundup: FDIC’s Win Against PwC Could Be a Bellwether | 01.05.18

FDIC win against PwC could finally force auditors to look for fraud [MarketWatch] Francine McKenna reports that representatives from PwC have given contradictory testimony in separate civil trials in the past year about the firm’s responsibility to design its audits to detect fraud. In the Colonial case where Judge Barbara Jacobs Rothstein ruled that PwC […]

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Reminder, Creepy Accountants: Offering to Teach a Subordinate About Tax Returns Is Not an Opportunity to Get All Handsy

Here’s a story from November (yeah, I know, but it’s January 3rd) about a “68-year-old Manhattan accountant” who “lured his 23-year-old clerk to his home office by saying he wanted to teach her about income-tax returns — then claimed God wanted her to be his sexual plaything.” I don’t have to tell any of you […]

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Accounting News Roundup: Caterpillar’s Fight, Google’s Euros, Failed Flip-Flops | 01.03.18

What New Tax Law? Caterpillar Fights to Protect Its Swiss-Made Profits [WSJ] An exhaustive look at Caterpillar’s battle with the IRS, including a nod to PwC for Best Accounting Firm With Conflicts of Interest in a Supporting Role. Former Treasury Secretary Lew Says Tax Cuts Will Leave the U.S. Broke [Bloomberg] Jack sees where this […]

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Accounting News Roundup: Big Deals, Bribes, and Indifferent Investors | 12.14.17

House, Senate Republicans Reach Deal on Final Tax Bill [WSJ] The text of the bill is still being written, but in short: the top individual rate landed at 37 percent; the corporate tops out at 21 percent; pass-throughs get a 20 percent income deduction. A compromise over the SALT deduction is in the works; rather […]

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Accounting News Roundup: Workers vs. Owners; KPMG Quits Liberty Tax Audit; Fraud and Strippers | 12.11.17

Tax Plans May Give Your Co-Worker a Better Deal Than You [NYT] The tax bill puts wage earners, currently about 80 percent of the working population, at a big disadvantage. “So a decorator, an artist or a plumber would have a higher tax rate than an owner of a decorating business, an art shop or […]

Accounting News Roundup: Blowing Off Clients and Christmas Tree Tax Breaks | 11.29.17

Yes, it’s only Wednesday, but look at the bright side; the end might be closer than we think. ‘I’ve got to run. My big client is on the other phone!’ [AT] Withum partner Ed Mendlowitz shares an anecdote about meeting an accountant who he overheard blowing off a client “because his humongous client needed something […]

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Accounting News Roundup: Antitrust and ‘Large, Round Number, Unsupported’ Journal Entries | 11.21.17

Ed. note: We’re off starting tomorrow, returning Monday. Send tips over the holiday to tips@goingconcern.com and submit your questions, missives, and tryptophan-induced dream journals to Open Items. Happy Thanksgiving! Mergers Yesterday, the Department of Justice sued to block the AT&T-Time Warner merger. Justice believes the combined company would “greatly harm American consumers” while AT&T says […]

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Accounting News Roundup: Insurance Fraud and Tax Reform Gets Harder | 11.16.17

Accountants behaving badly Here’s an interesting diversion in the ABB section from the usual “Accountant Embezzles Funds” story: insurance fraud! An Atlanta-area CPA, Earle Turner Sr., allegedly took out 19 life insurance policies on his clients, naming himself as the beneficiary: Mutual of Omaha notified Georgia officials of suspected fraudulent activity by Turner after finding […]

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Accounting News Roundup: Massages During Tax Season and Big 4 Collusion | 11.10.17

Editor’s note: Accounting News Roundup will be off on Monday, returning Tuesday. Have a great weekend. Employee retention “How to lose staff and alienate employees” is this Accounting Today article based on a speech given by Sandra Wiley and it is nearly perfect. Secretive, cultureless firms with only up-or-out career paths are doomed, and rightly […]

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Accounting News Roundup: “Small Business” and ‘You’re going to get killed in this bill’ | 11.09.17

“Small business” Politicians love to trumpet their support for small business. And it’s no wonder, small businesses are all around us, so groveling to them makes for an easy ploy. The Republican tax plan includes a 25-percent rate for pass-through entities, which many people equate with “small business.” Unfortunately, the vast majority of small businesses […]

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Accounting News Roundup: Audit Committees, Gimmicks, and Bad Hawaiian Accountants | 11.06.17

Audit committees A recent study has found that a 1999 SEC rule requiring companies to disclose certain information about their audit committees hasn’t lived up to expectations: Before adoption of the regulation, there was no mandate on audit-committee size; independence was required of only a committee majority; and no definition of independence was provided, giving […]

Accounting News Roundup: Embezzling and Impersonating; Tax Reform; Phony Revenue | 10.20.17

Accountants behaving badly A reader pointed us to this seemingly common ABB story featuring Krystle Sheals of Marion, Ark.: Sheals, a former bookkeeper with Nichols Fire and Security (NFS) in Memphis, Tennessee, is charged with using her access to her employer’s bank accounts to pay personal bills and expenses, including personal credit card payments, personal […]

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Accounting News Roundup: Hacks, Rio Tinto, and ‘What was owed to him’ | 10.18.17

Hacks Joe Kristan pointed us to this disturbing story in Tax Notes (sub req’d) featuring IRS Commissioner John Koskinen: “Our estimate has been that before that breach, information on over 100 million Americans was already in the hands of criminals,” Koskinen told reporters during a press conference on the IRS security summit preparations for the […]

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Accounting News Roundup: New Bosses, Property Taxes, and Kickbacks | 10.02.17

New bosses KPMG, BDO, and Crowe Horwath have all announced new global chairmen/CEOs recently. This will have almost no effect on your day-to-day professional lives beside the fact that you will be ignoring emails from a slightly different smiley white dude. SALT This Bloomberg BNA post points out that if your city’s newly constructed professional […]

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Accounting News Roundup: Estate Taxes, Accounting Fraud, and Insider Trading | 09.29.17

Estate taxes Perhaps this will sound like a repeat of yesterday, but the Trump Administration’s tax reform plan is more of an illogical tax policy term paper. USC Professor Edward Kleinbard called it a “deficit-busting mess.” PolitifFact said Trump’s claims about ending the estate tax are a “Pants on Fire” level falsehood. This particular proposal […]

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Accounting News Roundup: Accountants Worry About Technology, Change, Et al. | 09.26.17

Accountants are worried about technology, change, et al. If you haven’t immersed yourself in the collective anxiety of the accounting profession lately, I highly recommend this Accounting Today column. There are a plethora of quotes to choose from, but Grant Thornton CEO Mike McGuire has a good one: “Our industry is being disrupted by accelerating […]

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Accounting News Roundup: No Low Tax Rates for You, Accounting Firms | 09.13.17

Critical audit matters A BDO survey of corporate board directors found that 48% of them “do not feel the discussion of CAMs is an improvement to the transparency and usefulness of the auditor’s report for investors.” This shouldn’t be surprising since 1) A lot of board members don’t care much about auditing and 2) Even […]

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Catching Your CPA Stealing From You Redhanded Must Be Oh So Satisfying

If you’re an accountant and you plan to steal from a client or your employer or whomever, one thing is certain: You are confident. Why else would you try to embezzle money unless you were sure you wouldn’t get caught? As noted criminal Sam Antar has said, “It’s a calculated risk. Everybody takes precaution against […]

Accounting News Roundup: Culture Copycats and A Bad Accountant Strikes Again | 07.31.17

Culture copycats At Accounting Today, Dan Hood writes about “Three things that aren’t your firm’s culture,” and those are 1) “We treat our staff like family,” 2) “We work hard and we play hard,” and 3) “We value work-life balance.” I don’t have hard data to back this up, but I’d venture to say that […]

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Florida Accountant Picks Up a Green Thumb in Retirement; Authorities Not Impressed

For those of you hoping to retire one day, do you know how you’ll stay busy once you’re not working? Golf? Traveling? Yes, those sound nice and leisurely. Gardening is another nice hobby, however, be sure you stay current on the marijuana laws in your area, should you decide that’s the kind of greenhouse you […]

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The IMA Figured Some of You Could Use an Ethics Refresher

In Compliance Week, Tammy Whitehouse reports on a revised “Statement of Ethical Professional Practice” from the Institute of Management Accountants. Why was a revision necessary? To keep up with technology, maybe? Perhaps to establish some rules for all the robots? Nope! They had to revise it because a fair number of you are a bunch […]

Accounting News Roundup: MF Global vs. PwC and Tax Literacy | 02.17.17

Ed. note: GC will be off on Monday for Presidents Day. See you back here on Tuesday. MF Global vs. PwC We touched on this story last week, but if you can’t get enough of the pre-game analysis of the pending trial between the bankruptcy trustee of MF Global and PwC, then you’ll enjoy this […]

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Accounting News Roundup: Tax Reform Is Hard; Good and Bad Accountants | 02.08.17

Tax reform is hard Here’s Richard Rubin of the Wall Street Journal reporting on how Republicans are learning that reforming the tax code is difficult: A linchpin of the House Republicans’ tax plan, an approach called “border adjustment,” has split Republicans and fractured the business world into competing coalitions before a bill has even been […]

CPA Charged With Threatening Former President Obama’s Life on Facebook

Here's a weird one: A New Jersey man has been charged with threatening now-former President Obama's life on Facebook. A report in the Philadelphia Inquirer has the details: Federal prosecutors say William Peterman Jr., 33, of Medford Lakes and Beaufort, S.C., posted two death threats on his Facebook page last week, including one addressed to […]

Accounting News Roundup: Mandatory Arbitration and Too Many Managers | 09.09.16

Mandatory arbitration Alison Frankel of Reuters reports that the question of whether mandatory arbitration clauses in employment contracts may be soon before the Supreme Court. How big is the issue of whether employers can bar workers from acting as a group to enforce their rights? So big that on Thursday, the accounting firm Ernst & […]

Accounting News Roundup: Deloitte’s Revenue and Apple’s Tax Returns | 09.07.16

Deloitte's revenue Each year, accounting firms release revenue results and each year I am reminded that it's not really about transparency, rather, it is about marketing. The most meaningful number in Deloitte's press release is the $36.8 billion in global revenue. From there, it's a long list of factoids that the firm wants to tell […]

Accounting News Roundup: Non-CPA Managing Partners and Bad Accountant: Caught on Tape! | 08.01.16

Non-CPA managing partners Does the managing partner of an accounting firms need to be a CPA? If we assume that a managing partner’s duties include setting the overall vision and running the day-to-day operations of the firm, I think the answer is, “No.” If we also assume that a managing partner is the best business […]

Accountant Who Stole From Chicago Cubs, Cancer Patient Well On His Way to Making Enemies Out of Just About Everyone

There's probably nothing more agonizing in the world of sports than being a Chicago Cubs fan. Despite more than a century of disappointment, abuse and losing in every way imaginable, Cub fans remain loyal. I mean, what else are they gonna do? Right around the turn of the next century when they finally win another […]

White-Collar Crime Watch: An Online Dating Scam, A Fake CPA, and A Tax-Evading Stripper

My grandma got wrapped up in an illegal money-making scheme once. She started taping movies off TV, editing out the commercials, hand-labeling the VHS tapes, and selling them for $3 out of a cardboard box on her driveway. When I caught her, I quickly shut her new business venture down. Luckily, it's 2016 and none […]

Announcing the Certified Pervert Accountant Awards (aka The C[ree]PAs)

It's a tale as old as time: some accountants are perverts. Back in 2011, Jr Deputy Accountant wrote about SEC accountants browsing through porn at work. A few weeks ago, Caleb brought you the story of the accounting trainee who sent abusive texts and photos depicting disturbing sex scenes. Etc. Etc. Etc. Today I decided […]

Accountant May Have Mixed Up Her ‘Grocery’ and ‘Buy With Stolen Money’ Lists

Maybe it's because I read a lot of "accountant embezzled funds" articles, but I'm increasingly disappointed in the spending habits of hapless accountants who help themselves to their employers money. The scheme hatched by your average embezzling accountant isn't often well thought out, so I'd expect them to make equally reckless purchases. Sadly, more often […]

CPA Given Five Years to Think on ‘Thou Shalt Not Steal’

California CPA Donald Gridiron was sentenced to 57 months in prison for stealing more than $4 million from a New Jersey church and another nonprofit where he served as treasurer. Gridiron was also ordered to pay $5.1 in restitution. Apparently this all happened when some friendly bets on the golf course spiraled into something slightly […]

Texas Accountant Emerges as Early Contender for 2016’s Worst Person

Brad Harris, the founder and owner of Novus Health Care Services in Frisco, Texas, has been accused of some pretty terrible things in a FBI affidavit for a search warrant obtained by a local affiliate. Specifically, Harris allegedly instructed nurses to give hospice patients overdoses of medications like morphine to hasten their deaths: Harris, an […]

CPA Accused of Jamming Cell Phones Just Wanted to Commute in Peace, YOU MONSTERS

Cell phones, you may have noticed, are everywhere. The homeless even have them! You may have also noticed that people use them everywhere, too: while driving, on line at the grocery store, IN THE BATHROOM. It’s insufferable. One place where phones have become increasingly common is on public transit and, to put it mildly, this is an outrage and abomination.

White-Collar Crime Watch: a Whistleblower, a Hero Helicopter Pilot and a Dirty CPA Who Cleaned Money

This month in white-collar crime: Will you use your accounting skills for good or for evil? A new money-making scheme for all of usFun fact: in 1925, a scrap-metal dealer bought the Eiffel Tower from an Austro-Hungarian con-man named The Count. Instead of selling international landmarks to unsuspecting scrap dealers –- which I've considered and […]

Accountant Won’t Be Taking a Walk in the Woods Anytime Soon

James Hammes, who spent 6 years on the lam walking the Appalachian Trail, pleaded guilty earlier today to wire fraud.  The judge warned him that she could impose a maximum sentence of up to 20 years, although his plea deal should result in less time. Either way, it'll be more than enough time for him […]

CPA Thought He Was Out, Gets Pulled Back In

If you were a CPA who testified in the trial of two NYPD officers dubbed the "Mafia Cops," no one would doubt you if you said, "I could never ever, I will never ever, be a CPA again." After he was busted for stealing more than $5 million from his clients, New York accountant Stephen […]

Accountant Suffers Bumpy Landing at Sentencing

During his sentencing for a slew of crimes related to his role in a tax-evasion scheme, accountant William Frio, "lost his footing and hit his head on the defense table." The judge dropped a 5-year prison trip on Frio and ordered him to pay $1.7 million in restitution for his misstep. [Philly.com]

34-Count Indictment Won’t Stop Accountant from Serving His Clients: Lawyer

Jack Weichman, CPA has been indicted on 34 criminal charges ranging from bank fraud to money laundering to filing false tax returns, among others. His attorney, for one, is flabbergasted by this situation:  In a statement issued Thursday morning, Weichman's attorney, Theodore Poulos, said "we are deeply disappointed and, quite frankly, appalled that the government […]

“Just Ask the Guy” Not Always a Futile Fraud Detection Method

Boonlomp Soonthornchai handled trustee, executor and accounting services as a partner at Yount, Hyde and Barbour in Middleburg, Virginia.   In 2004, he began depositing client funds into his personal accounts, concealing the "the source of the money in his personal ledger." He then admitted to the embezzlement, "[w]hen confronted by firm board members and […]

Accountant’s Jail Sentence Conveniently Allows for Sunday Night Television

An accountant in Syracuse was sentenced to 16 weekends in jail and 5 years of probation for stealing $44k from her employer.  Syracuse.com reports that Kathleen M. DeFillippo aka Kathleen M. Rogowski will report to Onondage County Jail on Friday at 6 pm and be released on Sunday at 6 pm to serve out the sentence.  I […]

California Board of Accountancy Moves to Stop Incarcerated CPA From Providing Exceptional Client Service in Prison

Well, this lady is definitely going to have to find some other way to barter for honey buns and baby oil, as she won't be providing important financial services to fellow inmates any time soon: The Superior Court of the State of California, County of San Diego, North County Division, has granted the California Board […]

It’s Rarely a Good Sign When a Tax Prep Business Closes Its Doors Three Days Prior to April 15th

A Sunset Hills accounting business closed abruptly last week just days before the tax deadline. Its owner was sentenced to five years in prison for stealing $19,869 from a client. Mary Beth Gable, 55, owner of MEG Accounting and Tax Services at 10345 Watson Rd., pleaded guilty to the theft charge in February. Gable, of the […]

Woman Misunderstood ‘Crazy Accounting’ to Mean ‘Take Money That Doesn’t Belong to You’

Leslie Lebel used to work in the finance department for the City of Bloomington, Illinois. After seven years on the job, during the time between September and December 2011, she allegedly embezzled $21,000 or so. She was arrested last week this allegedly sticky fingering and prosecutors shared the details in court this week: Lebel accessed […]

Creepy Kid-Touching CPA Loses His License For Said Kid Touching

Why does Colin always assign me these creeper stories? Oh well. I don't know about anyone else but reading this gave me the creeps. Maybe because we had two creepy neighbors trying to mack on me when I was a nubile young middle schooler, though the one who drove a Camaro was pretty cool to […]

Accountant on Probation for Embezzlement Still More Employable Than the Average Non-Accountant (Temporarily)

Generally speaking, accountants are in demand. So much so, perhaps, that prospective employers might overlook small details when hiring one, such as that accountant still being on probation for stealing from a former employer. That's exactly (allegedly) what happened with 39-year-old Michelle Hice. You see, Michelle was fired from a third-party accounting firm in October […]

Scamwich Artist Takes Trademark Accountant Cheapery To An All New Level

In these troubled times, it makes sense to pinch pennies whenever possible. I managed to find an oil change place to regularly give me half off on my $90+ synthetic oil only service just by being charming, personable and – presumably – a chick. Some of us clip coupons. Others haggle (you guys should be […]