ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Tried calling over KMJ Corbin,the new accounting firm

KMJ is a small local firm based out of Southern California, with only 3 offices (Orange County, Los Angeles, and San Diego). They aren't licensed in the state of Virginia, where SCRC is domiciled. And the State of Virginia requires that only an individual or firm licensed in the State of Virginia is permitted to sign off on and issue an independent auditor's report. Search the State of Virginia Board of Accountancy for yourself:

https://secure1.boa.virginia.gov/Verification/Search.aspx?facility=Y

If they are doing it, they are not doing it themselves and have effectively engaged a 3rd party local firm in Virginia via some form of alliance to effectively "borrow" this local firm's name and license.

A tiny local firm in Southern California has zero business engaging with a tiny microcap company based out of Virginia.


Shifting gears slightly, since we're on the subject of KMJ Corbin, here they are in the news from a few years back (which in the public accounting profession is still considered to be very fresh and relevant news):

https://www.sec.gov/litigation/admin/2010/34-62899.pdf

Not a good sign when SCRC's new auditors themselves have previously been caught and punished by the SEC for issuing false audit reports and financial statements on behalf of dying companies who were found to have falsely reported non-existent revenues and net income... ...let's hope SCRC isn't the sequel to this movie, whose storyline sounds uncomfortably familiar...

...and here's another from the State of California that is less than 3 years old:

https://www.dca.ca.gov/cba/discipline/actions_attach/kmj_corbin.pdf

In this proceeding, KMJ actually had its license revoked by the State of CA, but as part of a settlement, they were able to get it back but are currently still on probation -- a probation where the very first item listed on their probationary Terms & Conditions is to "Obey all laws". Yikes... ...it's rarely a good sign when your auditor has to be specifically told this...