These charges come in the wake the Marcum penalty of $10m for standards violations, and systemic problems with quality control relating to audits of multiple special purpose acquisition corporations (SPACs). The company, as a leading SPAC auditor, saw a six-fold increase of clients who took advantage of significant quality control gaps.
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On review, approximately 25 to 50% audits revealed violations. The now-familiar SPAC boom during 2020 and 2021 caught the SEC’s attention when companies such as Draftkings Inc. and Nikola went public. Marcum’s spokesperson issued a statement in June when the SEC announced this heavy penalty. The statement did not confirm or deny SEC allegations.
We will continue to work hard to maintain the trust of our clients and investors.
Giugliano and the Marcum representative did not comment on the matter. The SEC stated that he had agreed not to hold a leadership position at any registered public accounting firms for at least three more years. Giugliano must also pay $75,000 in penalties. Carolyn Welshhans, SEC’s associate director of the division of…