Delicate Balancing (and a Backbone) Required Rarely does a week pass in white collar and investigation or SEC-regulatory outside counsel life that an auditor or government enforcement attorney does not request some form of interim or final read-out or update. These requests for information can encompass investigative process and factual findings, lists of search terms, interview outlines, or similar investi ...

Six Months In Special Purpose Acquisition Companies (SPAC) have been a prime focus of the SEC over the last six months. On April 12, 2021, the SEC issued “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies” to highlight potential accounting implications and provide guidance on making the determination between classifying the warrants issue ...

in the Cryptocurrency Economy Although cryptocurrency and blockchain technology create an environment that can help combat fraud within their systems, their introduction into the global economy has opened numerous doors for nefarious activity. This article provides an overview of what is cryptocurrency, blockchain technology, and the rise of threats to digital assets. Fraud used to be much simpler for the f ...

and “Voodoo” Economic Forecasts? One of the issues facing the business valuation community as well as business owners is the newly created accounting metric called “EBITDAC”, which stands for Earnings Before Interests, Taxes, Depreciation, Amortization, and Coronavirus. This is a non-GAAP accounting metric used by some companies today to raise more debts from lending institutions by adjusting or recasting t ...

To Attract or Retain Key Employees To both attract and retain key employees, many private companies have added stock-based compensation grants to their portfolio of employee compensation arrangements. An important component of any private company stock-based compensation arrangement is the value of the private company stock. Therefore, private company clients expect valuation analysts to be at least general ...

About a decade ago, Harriet and Jeffrey Taniyama went in search of a financial planner "just to make sure we were headed in the right direction" with respect to retirement, Harriet Taniyama says. The one they found, a former FINRA-licensed advisor named Christopher Dougherty in San Diego, persuaded them that they not only had enough money to retire but also to invest in his own ventures, including an organi ...

Avoid Traps with a Timely Appraisal New basis-consistency requirements make defensible valuations of inherited property even more important. Informed taxpayers are aware that only the wealthiest individuals should have concerns about the federal estate and gift tax, for gifts given and decedents dying in 2018 through 2025. Thanks to the legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, the ...

The Securities and Exchange Commission has approved amendments to Regulation S-K aimed at simplifying and modernizing disclosure by public companies, consultants and money managers. The amendments are required under the Fixing America's Surface Transportation Act of 2015. To read the full article in Pensions & Investments, click: SEC Simplifies Disclosure by Public Companies, Money Managers. ...

A self-styled “Money Doctor” who promoted his services on a Christian radio station penned a self-help guide to “share the benefits of putting Christ back in the center of our personal spending habits.” In pitches to clients, the ex-advisor allegedly promised guaranteed risk-free returns of five to eight percent per year. To read the full article in Financial Planning, click: Author of ‘Jesus Christ, Money ...

Riding a decade-long bull market, robo advisory firms have proved investors are willing to let complex and proprietary algorithms be at the heart of their investment advice. Assets under management at digital platforms are expected to top $1 trillion in the next few years. To read the full article in Financial Planning, click: Why Regulators Are Taking Aim at Robo Advisors. ...

Sen. Sherrod Brown, the highest-ranking Democrat on the Senate banking committee, is calling for a hearing on the Securities and Exchange Commission's proposed Regulation Best Interest. He cited a letter from 11 former SEC economists raising concerns about the economic analysis that went into the regulation. To read the full article in Think Advisor, click: Senate Banking Panel Lawmaker Wants Reg BI Hearing ...

Preparing for an audit by the Securities and Exchange Commission can be a significant undertaking for a small firm. During stressful times such as this, leaders should stay confident and set a positive example for others. To read the full article in Smart Brief, click: Preparing for an Unexpected SEC Audit. ...

Bargain Purchase Transactions This article summarizes the fair value measurement guidance and financial accounting considerations in business combinations—and specifically, in bargain purchase transactions. This discussion also describes the principles of acquisition accounting as they relate to fair value measurement. And, this discussion describes many of the valuation analyst considerations regarding the ...

To Measure Trustee Breach of Fiduciary Duty Damages The but for investment portfolio is a tool that damages analysts utilize to estimate economic damages when there is an allegation of a breach of fiduciary duty with regard to the management of an investment. In its simplest form, the but for investment portfolio estimates the value of a portfolio but for the alleged breach of fiduciary duty. Case law prece ...

The Securities and Exchange Commission on Thursday voted to change the definition of “smaller reporting company” in an effort to expand the number of companies that qualify for scaled disclosure accommodations. To read the full article in Journal of Accountancy, click: With SEC Vote, More Companies Qualify for Scaled Disclosure. ...

The SEC has charged an advisor and his wholly-owned RIA firm with operating a nearly $5-million Ponzi scheme that defrauded scores of investors over almost a decade, according to the regulator’s complaint filed in federal court. To read the full article in Financial Planning, click: SEC Accuses Advisor of $5M Ponzi Scheme. ...

The owner of a retirement planning firm cheated dozens of investors out of $3.8 million in two related scams that included a Ponzi scheme and fraudulent stock offerings targeting elderly retirees, the SEC says. To read the full article in FinancialPlanning, click: $3.8M Ponzi Scheme Funded Spa Treatment, Maids, Church Tithes: SEC. ...

FINRA will hold off on raising fees for its member firms despite "revenue challenges," according to an unusual glimpse the regulator gave into its projected 2018 budget.  Projected revenue of $822 million for 2018 is relatively flat when compared to 2013, the last year that FINRA raised fees, the regulator says in its newly released budgetary summary.  FINRA derives about half of its total revenue from indu ...

For Financial Reporting Purposes In this article, the author revisits the Market Participant Acquisition Premium (MPAP) issued by The Appraisal Foundation and reiterates the findings regarding what is a premium and what that means. ...

Since enacting the Securities Exchange Act in 1934, Congress has repeatedly expanded the arsenal of the SEC to protect investors through enforcement actions.  As a result, the SEC has steadily increased the number of enforcement actions.  The author's analysis of 1,563 accounting and auditing enforcement cases from 2008 to 2014 shows the most frequent securities law violations adjudicated by the SEC, the pe ...