Auditors Charged After Failing to Detect Fraud

Posted on December 28th, 2016 at 9:25 AM
Auditors Charged After Failing to Detect Fraud

From the Desk of Jim Eccleston at Eccleston Law LLC:

Auditing firm Grassi & Company, LLC has agreed to settle charges with the SEC for allegedly issuing nine audits reports containing unqualified opinions on the financial statements for four different funds advised by ClearPath Wealth Management, LLC.  In addition, a partner of the firm named Gary R. Purwin also agreed to settle the SEC charges.  In its complaint, the SEC asserted that Grassi & Company and Mr. Purwin violated professional standards while failing to recognize ClearPath's investment fraud scheme.

Both Grassi & Company and Purwin consented to the charges without admitting or denying the allegations. In all, Grassi & Company agreed pay disgorgement and prejudgment interest of $141,510.41 and a civil penalty of $260,000. Mr. Purwin agreed to a one-year practice suspension and the payment of a $20,000 civil penalty.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial investors including securities fraudunauthorized trading, breach of fiduciary duty, retirement planning negligence, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.  

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, auditors, fraud, Grassi & Company LLC, SEC, ClearPath Wealth Management LLC, Gary R. Purwin, investment fraud scheme, disgorgement, prejudgment,

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Thomas C.


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