iTalk Inc. (fka TALK)

[beer$$money]

I'm sure the Audit of UMS, it's related subsidiaries and TALK was a monumental task for a new auditing firm D. Brooks and Associates. TALK has a vested interest in getting the required filings out as quickly as possible. But getting it wrong is far more serious than filing Sec Forms late?

The PCAOB is a private, nonprofit corporation charged with bringing a halt to the financial shenanigans on the part of corporate chief financial officers (CFOs) and chief executive officers (CEOs).

The real issue, As part of this effort, PCAOB requires CFOs and CEOs to attest to the correctness of their companies’ financial statements. The teeth in this attestation is that the CEOs and CFOs are now subject to criminal penalties for incorrect financial statement representation.

So I'm absolutely certain they would delay filings until it is absolutely 100% correct.

Who oversees the PCAOB watchdog? The Securities and Exchange Commission (SEC) is charged with this task. The SEC’s mission is to make sure publicly traded companies tell the truth about their businesses and treat investors in a fair fashion by putting the needs of the investors before those of the company.

Public companies are subject to not only Sarbanes-Oxley but to other reporting and accounting rules established by the Securities Exchange Acts of 1933 and 1934. The Securities and Exchange Commission (SEC) can conduct an investigation of potential wrongdoing or violations. Both civil and criminal actions are possible for SEC accounting fraud.

While false accounting fraud cases involving public companies are often the most vigorously prosecuted because they make headlines and shareholders may suffer losses, any type of dishonest accounting can lead to fraud charges. This includes financial statement fraud and false accounting fraud for small privately held companies and even fraud involving individuals.



Consequences of Fraud in Accounting

The consequences of accounting fraud vary depending upon the type of allegedly fraudulent behavior. Potential criminal charges you could face include:
•Attempt to evade or defeat taxes. (26 U.S. Code Section 7201).
•A willful failure to pay or collect taxes (26 U.S. Code Section 7202)
•A willful failure to provide information, file a return, and/or pay taxes (26 U.S. Code Section 7203)
•Making fraudulent statements to employees or failing to furnish a statement to employees (26 U.S. Code Section 7204)
•Willfully making any statement, producing any document, or making any statement under penalty of perjury that you do not believe is true. (26 U.S. Code Section 7206)
•Willfully assisting, advising on or counseling on the filings of false returns, affidavits, or claims in connection with any matter arising under the Internal Revenue Code (26 U.S. Code Section 7206)
•Violating securities fraud laws (18 U.S. Code Section 3301).
•Securities and commodities fraud (18 U.S. Code Section 1348).
•Violations of Sarbanes Oxley including altering documents and defrauding shareholders of publicly traded companies.

The New York State Society of CPAs provides a comprehensive summary of penalties under Sarbanes-Oxley including up to 10 years in prison and a $1,00,000,000 fine for a CEO who recklessly violates his certification of company financial statements.

https://www.nyccriminallawyer.com/fraud-charge/accounting-fraud/