Regulation & Compliance
Ryan Toncheff, former chief financial officer of Granville Homes, a developer in the Fresno, California area, filed a whistleblower lawsuit on June 16 in Fresno County Superior Court, alleging that the company and its founder, Darius Assemi, retaliated against him and terminated his employment after he raised issues regarding cash flow and lender disclosures. The lawsuit claims Assemi diverted $14 million to $16 million in company operating cash to purchase land once owned by his family.
The U.S. Securities and Exchange Commission (SEC) proposal to replace quarterly reports with semi-annual reports has few supporters among financial analysts. The latest CFA Institute survey shows that among more than 2,500 surveyed analysts and portfolio managers, 62% oppose the proposal, and 70% oppose granting issuers broad flexibility to choose reporting frequency. 84% of respondents believe that allowing different reporting frequencies will make it harder for investors to compare companies and industries.
The U.S. Attorney's Office for the District of Maryland announced on Monday that Teresa Desy Majo, former CFO of Officine Maccaferri's North American subsidiary, has been indicted on charges of wire fraud, aggravated identity theft, and possession of forged immigration documents. Prosecutors allege that between January 2021 and May 2024, Majo used the identities of multiple executives to forge approval documents, which she submitted to the payroll departments of U.S. and Canadian subsidiaries to obtain improper compensation and benefits. Additionally, after being terminated, she concealed facts from immigration authorities to obtain lawful permanent resident status. If convicted, she faces up to 20 years in prison for wire fraud and a mandatory two-year sentence for identity theft.
The CPA societies of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont in the United States have approved a merger to form the New England CPA Society effective July 1. The new organization will have approximately 14,500 members, making it one of the largest coalitions of state societies in the nation. Supporters say the move will enhance the industry's voice and alleviate talent shortages, but observers also question whether this will trigger a wave of consolidation among state societies nationwide.