This is a photo of the National Register of Historic Places listing with reference number 7000063
Friday, May 2, 2014
CPA, ACCOUNTING FIRM TO PAY $100,000 PENALTY FOR IMPROPER AUDITS OF REGULATED COMMODITY FUTURES FIRM
FROM: COMMODITY FUTURES TRADING COMMISSION
April 28, 2014
Federal Court Orders Illinois CPA Michael Tunney and His Accounting Firm, Tunney & Associates, P.C., to Pay a $100,000 Penalty for Improper Audits of a Commodity Futures Firm
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Consent Order against Tunney & Associates, P.C. (T&A), an accounting firm with offices in Hammond, Indiana and Orland Park, Illinois, and Michael Tunney, its sole owner and a certified public accountant (CPA) licensed in Illinois and Indiana, requiring T&A and Tunney jointly and severally to pay a $100,000 civil monetary penalty for violating CFTC Regulations when conducting audits for The Linn Group (TLG), a CFTC-registered Futures Commission Merchant (FCM).
The Order, entered on April 28, 2014, by Judge Sharon Johnson Coleman of the U.S. District Court, Northern District of Illinois, also permanently prohibits T&A and Tunney from practicing or appearing before the CFTC and from violating the provisions of the CFTC’s Regulations related to independent auditors, as charged.
The Order stems from a CFTC Complaint filed April 18, 2013, that charged T&A and Tunney with conducting year-end audits of TLG for 2007 through 2011 in violation of Generally Accepted Auditing Standards (GAAS) and CFTC Regulations and failing to report material inadequacies to the CFTC when required to do so (see CFTC Press Release 6571-13).
The Order finds that T&A and Tunney did not have experience auditing FCMs or any entity that held customer segregated accounts, were not qualified to conduct an FCM audit, and that Tunney lacked sufficient understanding of the applicable Commodity Exchange Act or CFTC regulatory provisions prior to accepting any of the audit engagements. The Order also finds that there was no planning for the auditing of TLG, and the audits failed to include appropriate tests of TLG’s accounting system, internal accounting controls, and procedures for safeguarding customer and firm assets.
The CFTC appreciates the assistance of the Division of Swap Dealer and Intermediary Oversight. The CFTC also appreciates the assistance of the National Futures Association.
The CFTC Division of Enforcement staff members responsible for this matter are Allison Passman, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner.
Thursday, May 1, 2014
"MAKE A LOT OF MONEY" COMPANY OWNER CHARGED BY SEC FOR PRIME BANK SCHEMES
FROM: SECURITIES AND EXCHANGE COMMISSION
SEC Charges Las Vegas Resident and His Company with Securities and Broker-Dealer Registration Violations in Connection with Multi-Million Dollar Prime Bank Schemes
On April 23, 2014, the Securities and Exchange Commission filed charges against Las Vegas resident James Lee Erwin and his company, Las Vegas-based Joint Venture Solutions, Inc., for violating the securities offering and broker-dealer registration provisions of the federal securities laws. Erwin and Joint Venture Solutions, Inc. promoted investments in Malom Group AG of Switzerland, a company named with an acronym for "Make A Lot Of Money," that is behind a pair of advance fee schemes guaranteeing astronomical returns to investors in purported prime bank transactions and overseas debt instruments.
The SEC's complaint, filed in the U.S. District Court for the District of Nevada, alleges that between 2009 and 2011 Erwin, through Joint Venture Solutions, promoted investments in Malom, offered Malom's securities to prospective investors, and acted as an intermediary between investors and Malom. The defendants' efforts induced at least five investors to pay Malom over $2.5 million to enter into agreements with Malom. The SEC alleges that while the defendants received commissions based upon a percentage of the amount of investor funds raised, the investors they recruited lost all of their invested funds.
The SEC's complaint alleges that Erwin and Joint Venture Solutions, Inc. violated the securities registration provisions of the federal securities laws, specifically, Section 5 of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest thereon, and civil penalties against each defendant.
The SEC's investigation was conducted by Stephen Simpson and Angela Sierra, and the SEC's litigation will be led by Mr. Simpson. The SEC appreciates the assistance of the Department of Justice, Federal Bureau of Investigation, and State Attorney's Office for the Canton of Zurich, Switzerland.
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