- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-06-21T18:12:00
Marcum agreed to pay $13 million in penalties between settlements with the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) announced Wednesday addressing allegations of widespread quality control and supervision failures stemming from the audit firm’s significant work with special purpose acquisition company (SPAC) clients.
The SEC fined Marcum $10 million, while the PCAOB added a $3 million penalty—its largest ever imposed against an audit firm that is not a member of a global network. The PCAOB, which is overseen by the SEC, will require Marcum to make functional changes to its supervisory structure related to its system of quality control—a first for the regulator.
The SEC will require Marcum to retain an independent compliance consultant to assess its quality control policies and procedures and placed restrictions on the firm accepting new clients among other disciplinary measures.
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A former engagement quality review partner at Marcum agreed to pay a $30,000 penalty and be suspended as part of a settlement with the Securities and Exchange Commission addressing alleged violations of audit standards in his work at diversified holding company Ault Alliance.
An ex-partner at Marcum agreed to pay $75,000 to settle charges by the Securities and Exchange Commission he failed to remediate numerous quality control deficiencies magnified by the audit firm’s special purpose acquisition company client boom.
Digital World Acquisition Corp. faces a penalty of $18 million as part of a settlement reached with the Securities and Exchange Commission regarding fraud allegations related to its dealings with Trump Media & Technology Group.
A bank examiner and senior manager at the Federal Reserve Bank of Richmond pled guilty to insider trading after allegedly misappropriating confidential information on seven banks to make profitable trades.
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
A publicly traded cryptocurrency mining company will pay $10 million and completely change its business model to one with “lower corruption risk” as part of a settlement over violations of the Foreign Corrupt Practices Act (FCPA), two regulators announced.
