The auditor, William Meyler, admitted in the deposition that the delisting occurred based on the malpractice. The malpractice was failing to rotate off the audit.
The auditors made it worse by failing to notify Tauriga in November of 2015 that they were under investigation for lack of independence. They had a duty to Tauriga to inform them.
They also had a duty to transfer the work papers on request, and failed to respond to any of TAUG's requests.
Next, William Meyler testified that his attorney told him not to comply with the rules and to withhold TAUG's work papers.
Right before the censure TAUG again became Cowan's client, and charged $25,000 to certify to the new auditor that the 2014 audit was independent and in compliance with the PCAOB rules. They did this despite knowing they were under investigation for independence violations. WIlliam Meyler even admitted in the deposition that an SEC lawyer he retained told them that Cowan could not sign off on the 2014 audit. But Cowan took the $25,000 anyway.
They will be nailed and nailed good in court. Some might lose their ability to practice.
News 
Market Data 
Discover 
