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Spike in Fourth Quarter SEC Accounting and Auditing Enforcement Activity Results in Notable Increase in FY 2023

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In contrast, total monetary settlements were just over half of the average total settlements in the past five years.

WASHINGTON, Feb. 28, 2024 /PRNewswire-PRWeb/ — The U.S. Securities and Exchange Commission expanded its accounting and auditing enforcement activity in fiscal year 2023, while monetary settlements dropped for the second consecutive year, according to a new report released today by Cornerstone Research.

The report, SEC Accounting and Auditing Enforcement Activity—Year in Review: FY 2023, found that the SEC publicly disclosed 83 accounting and auditing enforcement actions in FY 2023, a 22% increase from FY 2022 and the highest number of actions initiated since FY 2019. More than half of the 83 actions were initiated in the fourth quarter of the fiscal year, and 28% were initiated in the last month alone of the fiscal year.

“The 22% increase in accounting and auditing enforcement activity in fiscal year 2023 outpaced the 8% increase in original enforcement actions brought by the SEC, suggesting an increased focus by the enforcement division on these matters,” said Steve McBride, a report coauthor, principal, and cohead of the accounting practice at Cornerstone Research.

Despite the SEC reporting $4.9 billion in total monetary settlements in FY 2023, the second highest on record, monetary settlements in accounting and auditing enforcement actions totaled $583 million, a 7% decrease from the prior fiscal year and 47% lower than the average of total monetary settlements in the prior five fiscal years. Disgorgement and prejudgment interest accounted for 67% of total monetary settlements imposed in FY 2023, while civil penalties accounted for 33% of the total monetary settlements. FY 2023 was the first time that civil penalties comprised less than half of total monetary settlements since FY 2020.

“The decline in monetary settlements during fiscal year 2023 may be due, in part, to a continued increase in the SEC’s consideration given to cooperation and remedial efforts when imposing monetary settlements,” added Simona Mola, a report coauthor and principal at Cornerstone Research. “Such consideration may translate in lower monetary settlements but not necessarily in no penalties at all. In fact, the proportion of respondents who received no monetary settlement decreased from last fiscal year.”

The SEC acknowledged that 26% of respondents who settled in FY 2023 offered cooperation, undertook remedial efforts, and/or self-reported to the SEC, up from 24% in FY 2022.

In addition to monetary settlements, the SEC imposed non-monetary sanctions on individual and firm respondents (e.g., officer and director bars, requirement to retain an independent consultant). Officer and director bars imposed on individual respondents who settled in FY 2023 increased to 31%, from 18% in FY 2022.

Of the 83 enforcement actions, 35 referred to announced restatements of financial statements, and 32 referred to announcements of material weaknesses in internal control. Actions referring to announced restatements and/or material weaknesses in internal control remained at 41, the highest level since FY 2021. The percentage of initiated actions referring to an announced restatement and material weakness in internal control (31%) reached its highest level in recent years. Consistent with FY 2022, the SEC’s most common allegations related to a company’s revenue recognition and internal accounting controls. One or both violations were alleged in 63% of FY 2023 actions.

Additional Trends

Of the 83 actions initiated during FY 2023, 71 were administrative proceedings and 12 were civil actions.The SEC issued non-monetary sanctions against 50% of individual respondents who settled in FY 2023, down from 62% of individual respondents who settled in FY 2022.There were 111 total respondents in accounting and auditing enforcement actions initiated in FY 2023, a slight increase from the 103 respondents in FY 2022.In FY 2023, the SEC initiated 11 actions against non-U.S. respondents, higher than the average of nine actions per year from FY 2018 to FY 2022.The SEC initiated one action in FY 2023 as part of its continuing Earnings Per Share (EPS) Initiative, its fifth action imposed in connection with the EPS Initiative since its inception in 2020.The SEC initiated three actions with alleged violations of Section 304 of Sarbanes-Oxley (“clawback” provision) in FY 2023, a sharp decrease from the nine actions initiated in FY 2022 and below the yearly average of five actions initiated in FY 2018–FY 2022.

About Cornerstone Research 
Cornerstone Research provides economic and financial consulting and expert testimony in all phases of complex disputes and regulatory investigations. The firm works with an extensive network of prominent academics and industry practitioners to identify the best-qualified expert for each assignment. Cornerstone Research has earned a reputation for consistently high quality and effectiveness by delivering rigorous, state-of-the-art analysis since 1989. The firm has over 900 staff in nine offices across the United States and Europe. 

Media Contact

Elisabeth Gaubinger, Cornerstone Research, 202.912.8909, egaubinger@cornerstone.com, https://www.cornerstone.com/

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SOURCE Cornerstone Research

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National Center for Charter School Accountability Launches with Analysis of State Charter School Laws

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September 23, 2024

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The National Center for Charter School Accountability provides research and recommendations on increasing transparency and accountability for charter schools.

NEW YORK, Sept. 23, 2024 /PRNewswire/ — The Network for Public Education (NPE) announces a new project, the National Center for Charter School Accountability (NCCSA), to provide research and recommendations on increasing transparency and accountability for charter schools. NPE is the leading organization that advocates revising state charter laws to make charter schools better align with the original vision of charter schools as teacher and parent-led schools of innovation that complement, not compete with, the public school system.

“The charter sector, now saturated with impersonal national chains and for-profit management corporations, has strayed far from the original mission of charter schools. A few states follow that vision; most do not. We regularly receive calls from charter school parents, teachers, and public school advocates raising concerns. The Center will educate the public with facts and provide information on how best to address concerns,” said Carol Burris, the Executive Director of NPE.

The Center includes a searchable database of news stories highlighting problems regarding charter schools. It also provides a portal where parents and taxpayers can submit questions and complaints. It also provides access to nine NPE research reports on charter schools, including reports on charter closures and for-profit-run charter schools.

In addition to research and reports, NCCSA evaluates state laws based on accountability, responsible growth, community input, and protections for students and taxpayers. An interactive map shows the number of open and closed charter schools in each state.

“The Center will grow over time, providing information unavailable on charter trade group sites. One million students have been displaced due to charter closures. In the age of choice, parents and taxpayers deserve the facts,” Burris added.

Commenting on the new project, NPE President Diane Ravitch noted, “NCCSA is a valuable resource for parents, taxpayers, policymakers, and the press who want to be informed about the status of charter schools. Accountability matters, and the Center will provide it via accurate and timely information.”

Access to NCCSA can be found here.

The Network for Public Education is a national advocacy organization with over 350,000 members and 200 grassroots groups. Its mission is to preserve, promote, improve, and strengthen public schools for current and future generations of students.

Contact: Carol Burris
cburris@networkforpubliceducation.org
(646) 678-4477

View original content:https://www.prnewswire.com/news-releases/national-center-for-charter-school-accountability-launches-with-analysis-of-state-charter-school-laws-302256096.html

SOURCE Network for Public Education

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Vermont State Dental Society, University of Detroit Mercy, Sanders, and Welch Announce Historic Effort to Advance Dental Care and Education Across State

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58 mins ago

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September 23, 2024

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BURLINGTON, Vt., Sept. 23, 2024 /PRNewswire/ — The Vermont State Dental Society (VSDS), University of Detroit Mercy (UDM), Senator Bernie Sanders, and Senator Peter Welch are partnering to bring an innovative Dental Oral Health Education Center to Vermont in Fall 2027. This new dental clinic and education program would bring UDM students to Vermont to complete their final years of training – strengthening the dental care provider pipeline and expanding access to much-needed care across the state.

At a recent press conference, VSDS, UDM, Sanders, and Welch celebrated the program receiving its accreditation from the Commission of Dental Accreditation (CODA) – an essential step in establishing the teaching program in Vermont.

Sanders and Welch are working to secure $4.6 million in federal funding through the FY25 Congressionally Directed Spending process to support this historic initiative. The funding was recently approved by the Appropriations Committee and needs to be passed by the House and the Senate before being signed into law by President Biden.

The tentative location for the new center will be in Chittenden County.

VSDS, a nonprofit professional healthcare organization whose mission is to improve the oral health of Vermonters and to serve the profession of dentistry in the state, is pioneering the new institution with UDM as it brings more than 90 years of experience in educating dentists worldwide.

Beginning in the fall of 2025, this partnership will include two years of foundational and preclinical education at the UDM School of Dentistry Campus in Detroit, followed by two years of clinical and didactic education at a new dental clinic based in Colchester. The Detroit Mercy-Vermont dental program will offer DDS dental education in the state of Vermont, accredited by the Commission of Dental Accreditation (CODA).

University of Detroit Mercy-Vermont will house modern classrooms with on-site clinics to support its clinical education program and serve as a public health Medicaid clinic to provide dental care to qualifying individuals. Extending its reach beyond its Colchester facility, the new dental program will partner with clinical organizations in Vermont to reach areas with a shortage of dental health professionals and underserved populations.

As Vermont’s professional association for dentists, the VSDS works diligently to enhance the oral healthcare environment in the state. With just under 400 members, VSDS includes more than 80% of the state’s practicing dentists. VSDS provides resources, educational information, and support for its members and the public and advocates for public policies and systems to improve oral healthcare for all Vermonters.

University of Detroit Mercy is Michigan’s largest and most comprehensive independent Catholic university, sponsored by the Sisters of Mercy of the Americas and the Society of Jesus (the Jesuits). For more information, please visit www.udmercy.edu.

View original content:https://www.prnewswire.com/news-releases/vermont-state-dental-society-university-of-detroit-mercy-sanders-and-welch-announce-historic-effort-to-advance-dental-care-and-education-across-state-302256126.html

SOURCE University of Detroit Mercy

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eBay Announces Samantha Wellington as Senior Vice President, Chief Legal Officer, General Counsel and Secretary

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58 mins ago

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September 23, 2024

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SAN JOSE, Calif., Sept. 23, 2024 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced the appointment of Samantha Wellington as Senior Vice President, Chief Legal Officer, General Counsel and Secretary. In this role, Samantha will oversee all global aspects of eBay’s legal department, including Government Relations, intellectual property, employment, litigation, regulatory and corporate work across our financial services, marketplaces, and product and technology organizations. Samantha will report directly to Jamie Iannone, eBay’s Chief Executive Officer, and will join the company on October 7, 2024.

Samantha joins eBay with a distinguished career in legal and business affairs, most recently serving as TriNet’s Executive Vice President of Business Affairs, Chief Legal Officer, and Secretary. In this role, Samantha led a team of professionals across Legal, Compliance, Government Affairs, Customer Service, Sales, Operations, Product Management, Engineering, Technology, and Risk. Her leadership focused on spearheading initiatives that address the evolving workplace dynamics for TriNet’s customers, facilitating capital access for small business owners, and enhancing customer service experiences to support business growth. Prior to TriNet, she spent 12 years at Oracle, where she held a number of senior legal positions.

“Samantha has successfully led multifaceted teams and navigated complex legal and regulatory environments throughout her career,” said Jamie Iannone, Chief Executive Officer, eBay. “Samantha’s expertise will be invaluable as we continue to innovate and grow our global marketplace while ensuring we meet our legal and ethical responsibilities. Her passion for empowering small businesses aligns perfectly with eBay’s purpose, and I’m excited to welcome her to the team.”

“My parents started their business by selling skateboard parts at the open market in Sydney, so I have a deep appreciation for eBay’s role in empowering businesses of all sizes,” said Samantha Wellington. “As a longtime eBay user and collector, I am passionate about helping others unlock similar opportunities and connecting people with what they love.”

Samantha holds Bachelor’s Degrees in Creative Arts and Laws from Wollongong University, as well as a Master of Laws in Communication and Technology Law from the University of New South Wales. She has served as a board member for the National Association of Professional Employer Organizations and BSA, The Software Alliance.

Samantha replaces Marie Oh Huber, who left eBay in June after nine years as General Counsel. 

About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2023, eBay enabled more than $73 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ebay-announces-samantha-wellington-as-senior-vice-president-chief-legal-officer-general-counsel-and-secretary-302256084.html

SOURCE eBay Inc.

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