Insights & Regulatory Updates
SEC Charges The Lovesac Company and Former Executives with Accounting Violations Over Concealed Shipping Expenses
The Securities and Exchange Commission (SEC) recently announced charges against The Lovesac Company, a publicly traded furniture retailer based in Connecticut, as well as two of its former executives, Donna Dellomo, CPA (the company’s former CFO), and Yoon Um, CPA (the former controller), for alleged accounting violations. These charges stem from unreported shipping expenses that allegedly skewed the company's financial records and metrics. Lovesac has agreed to settle the claims, including a civil penalty payment of $1.5 million.
New CPA Paths Emerge as States Try to Stem Accountant Shortage
The accounting industry is grappling with a growing workforce shortage, prompting states and professional organizations to rethink traditional pathways to becoming a Certified Public Accountant (CPA). In an effort to attract more candidates to the profession, several states are considering allowing aspiring accountants to bypass a fifth year of education—a long-standing requirement that many see as a significant barrier to entry.
SEC Charges Accountant Olayinka Oyebola and His Firm With Aiding and Abetting Massive Fraud
The Securities and Exchange Commission (SEC) has taken significant enforcement action against Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), alleging their role in a sprawling securities fraud orchestrated by Mmobuosi Odogwu Banye, a businessman with an ambitious—and, it turns out, fictitious—empire of U.S.-based companies.
Key Takeaways from SEC Report on Cyber-Related Frauds and Internal Accounting Controls
In today's rapidly evolving digital landscape, the threat of cyber-related fraud has become an ever-present concern for public companies. The SEC's 2018 report sheds light on this issue, focusing on the risks posed by cyber-related frauds that exploit vulnerabilities in internal controls. The report serves as both a cautionary tale and a guide for companies looking to strengthen their defenses against these sophisticated attacks.