SEC Files Civil Suit Against Accountants That Kept Quiet
Wall Street Journal Online (11/01/00) Vol. 140, No. 43 p.G1; Burns, Judith

The Securiites and Exchange Commission (SEC) has begun to crack down on accountants who fail to blow the whistle on clients they suspect are committing fraud. The SEC has filed its first-ever suit against an accountant in a whistle-blowing case since section 10A, which requires accountants to speak up when they have suspicions of accounting violations, was added to U.S. securities law in 1996. The civil suit is against Glenn Ohlhauser, an accountant with MacKay & Partners, who allegedly failed to take action when he uncovered potentially illegal conduct during his audit of Solucorp Industries. The SEC has also filed lesser administrative proceedings against Pat Rosetti and Jeffrey Yonkers, two CPAs with Marcum & Kliegman, who allegedly kept quiet about potential accounting violations at Detour Magazine.


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