14th June 2024
The U.S. Securities and Trade Fee on Friday mentioned it has charged accounting agency Prager Metis, which beforehand did audit work for the FTX Group, with a whole bunch of auditor independence violations.

Between December 2017 and October 2020, Prager Metis improperly added indemnification provisions to engagement letters to shoppers for greater than 200 audits and different work, the SEC mentioned. This prevented the agency from having the independence required by legislation, the regulator mentioned.

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Attorneys for the worldwide accounting agency didn’t reply instantly to requires remark.
Even after senior companions on the agency have been alerted to the difficulty, Prager Metis continued to signal engagement letters with these provisions, the SEC mentioned.

Prager Metis was one of many auditors for the FTX Group, in line with a court docket submitting. Crypto change FTX filed for chapter in late 2022 and the U.S. authorities later accused the agency, its founder and key executives of a sweeping fraud scheme. Founder Sam Bankman-Fried’s trial begins subsequent week.

The SEC’s lawsuit towards Prager Metis CPAs and its skilled companies agency was filed within the U.S. District Courtroom for the Southern District of Florida.

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The company mentioned it’s looking for an injunction and penalties, amongst different issues, and its investigation into Prager Metis is ongoing.

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