- 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.
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
