Unscrupulous Actions

Unscrupulous Actions

November 18, 2007

The question is, what do these unscrupulous actions have to do with Orange County, or Coto de Caza for that matter? - Do they provide a lenitive effect?

Irreconcilable conflict of interest

In Wade Vs. Soo Line Railroad, a routine worker’s compensation suit in 2003 leads to conflict of interest during appeal filed in the 7th District in Northern District if Illinois, Judge Frank Eastbrook questions attorney George Brugess, a Chicago-based attorney with Hoey & Farina: I do not understand how you can file an appeal, the result of which is to shift a very large monetary obligation off of your shoulders and onto your client’s. It looks to me that you an irreconcilable conflict of interest with Wade”. The writing in his opinion, the judge writes “Arguments designed to protect the attorney at the expense of the client are precisely the sort of acts that invite discipline”. Eastbrook eventually referred all of the attorneys to a disciplinary commission in Illinois, where they could face disbarment.

Rampant Fraud

According to a survey of senior executives conducted by consulting firm Kroll Inc.

Companies suffering corporate fraud in the previous three years – 80%
Companies that experienced theft of physical assets or stock – 34%
Companies that cited high staff turnover for increased fraud exposure – 32%

Paying protection money

Chiquita® executives plead guilty to paying “protection money” to a Colombian paramilitary group and agree to pay $25 million for allegedly making illegal payments to AUC. The US designated the AUC a terrorist group in 2001.

Auditors SOXED

The SEC charged 60 auditors in September with failure to compy with SOX requirements

Without admitting or denying the findings of the Orders, each of the settling firms and partners consented to the entry of an order finding that they violated Section 102(a) of the Sarbanes-Oxley Act. The firms and partners who settled the proceedings are named in the following 29 settled Orders.

Andrew M. Smith, CPA
Beckman Kirkland & Whitney; James M. Kirkland, CPA and Robert J. Whitney, CPA
Berger, Apple & Associates, Ltd.; Mitchell S. Seifert, CPA
Beutel Accountancy Corporation; Todd W. Beutel, CPA
Bray & Associates CPAs, LLC; Arnold D. Bray, CPA
Bruce Redlin, CPA
Bujan & Associates, Ltd.; Frank Bujan, CPA
Charles J. Birnberg, CPA
Charles R. Hunt, CPA, PA; Charles R. Hunt, CPA
Dan Clasby & Company; Daniel E. Clasby, CPA
Darilek, Butler & Co., P.C.; Robert F. Darilek, CPA
David M. Winings, CPA, An Accountancy Corporation; David M. Winings, CPA
Forbush & Associates; Daniel J. Forbush, CPA
F.X. Duffy & Co., Inc.; Kevin P. Duffy, CPA
Harvey S. Weingard, CPA
Henry L. Creel Co., Inc.; Henry L. Creel, CPA
Henry Schiffer, CPA, An Accountancy Corporation; Henry Schiffer, CPA
Isaac Gordon, CPA
Joseph Mao, CPA
McNeal, Williamson & Co.; Daniel L. Williamson, CPA
Michael C. Lingerman, CPA (partner of firm since dissolved)
Milner and Brock, CPA's; Stephen D. Milner, CPA
Norman Stumacher, CPA
Preferred Accounting Services, Inc.; Ana Costales, CPA
Randy Simpson, CPA, P.C.; Randy R. Simpson, CPA
Reed & Taylor, CPAs, P.C.; Robert E. Reed, CPA
Sanford H. Feibusch, CPA, PC; Sanford H. Feibusch, CPA
United Financial CPA PC; Anowar Hossain, CPA
William E. Costello, CPA


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