Action against Respondents, an audit firm and its managing partner, for their roles in a scheme to avoid registration and reporting requirements through the creation of “blank check” shell companies. According to the SEC, Respondents performed audits on the “blank check” companies that deviated from PCAOB standards. The SEC alleges that Respondents performed the deficient audits to avoid SEC registration and reporting requirements for the sale of the companies. Respondents have agreed to five-year bars with the right to apply for reinstatement and to pay, jointly and severally, disgorgement of $19,500, prejudgment interest of $3,961.90, and civil penalties of $25,000.

SEC Order