June 8, 2022

CohnReznick LLP and its partners Stephen M. Wyss, Stephen H. Jackson, and Robert G. Hilbert were charged with improper professional conduct in their engagement with clients Sequential Brands Group, Inc. and Longfin Corp, violations of Rule 102(e) of the SEC’s Rules of Practice, Rule 2-02(b)(1) of Regulation S-X, and violations of Section 13(a) of the SEC Act of 1934. CohnReznick failed to obtain sufficient evidence to support Sequential’s conclusion that its goodwill was not impaired or reduced in value, despite the firm’s own valuation specialists expressing concern. In its Longfin audit, CohnReznick failed to address known issues involving related party transactions used to fraudulently inflate Longfin’s revenues. CohnReznick’s $1.9 million penalty will be returned to investors. SEC

Tagged in: Securities Fraud,