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In re Sanford H. Feibusch

Exhibit of Press Release: SEC Charges 69 Audit Firms and Partners for Issuing Audit Reports While Not Registered with the PCAOB (Press Release No. 2007-183; September 13, 2007)

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summary

Sanford H. Feibusch, CPA, PC and its partner Sanford H. Feibusch, CPA willfully violated Section 102(a) of the Sarbanes-Oxley Act by issuing an unregistered audit report for Power-Save Energy Company in March 2004, leading to a settled SEC order imposing censure, a cease-and-desist order, and a waiver of the $3,000 audit fee.

paragraph

Sanford H. Feibusch, CPA, PC and its partner Sanford H. Feibusch, CPA were found to have willfully violated Section 102(a) of the Sarbanes-Oxley Act by issuing an audit report for Power-Save Energy Company’s 2003 fiscal year while unregistered with the PCAOB, a requirement effective since October 22, 2003. The audit, which was never paid for despite a $3,000 invoice, was included in Power-Save’s Form 10-KSB filed with the SEC on March 24, 2004. As part of a settled administrative proceeding, both respondents agreed to cease-and-desist orders, censure, and a binding undertaking to forgo payment for the audit, with future practice rights contingent upon proper PCAOB registration and SEC documentation.

narrative

Sanford H. Feibusch, CPA, PC and its partner Sanford H. Feibusch, CPA were charged by the SEC with willfully violating Section 102(a) of the Sarbanes-Oxley Act by issuing an audit report for Power-Save Energy Company’s 2003 fiscal year while unregistered with the Public Company Accounting Oversight Board (PCAOB), a requirement that became effective on October 22, 2003. Feibusch, as the engagement partner, participated in preparing and issuing the audit report dated March 22, 2004, which was included in Power-Save’s Form 10-KSB filed with the SEC on March 24, 2004, despite knowing the firm lacked PCAOB registration. Power-Save, a registered issuer under Section 12(g) of the Exchange Act, never paid the $3,000 invoice for the audit work. The SEC found both respondents willfully violated the law, with Feibusch directly causing the firm’s violation. As part of a settled order, both agreed to cease-and-desist orders, accepted censure, and waived any right to payment for the audit. The order further requires that any future practice before the SEC be contingent upon obtaining proper PCAOB registration and submitting documentation of such registration to the Commission. The respondents did not admit or deny the findings, except as to jurisdiction and subject matter, which they admitted.

Enriched metadata

Scheme: accounting-fraud (100%)
Outcome: settled

Classified accounting-fraud(confidence 100%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →

Extracted insights

Dollar amounts 3

$114K $113,603 $100K–$1M
$103K $102,533 $100K–$1M
$3K $3,000 <$10K

Entities 1

agency Securities and Exchange Commission

Triples 7

SEC instituted proceedings against Sanford H. Feibusch, CPA, PC and Sanford H. Feibusch, CPA
Sanford H. Feibusch, CPA, PC is headquartered in Las Vegas, Nevada
Sanford H. Feibusch, CPA, PC audited financial statements for Power-Save Energy Company for fiscal year ended December 31, 2003
Sanford H. Feibusch, CPA is licensed in New York and Nevada
Sanford H. Feibusch, CPA was engagement partner for Power-Save Energy Company audit for fiscal year ended December 31, 2003
SEC accepted Offer of Settlement from Sanford H. Feibusch, CPA, PC and Sanford H. Feibusch, CPA
Proceedings instituted pursuant to Sections 4C and 21C of Securities Exchange Act of 1934 and Rule 102(e)

PDF

In re Sanford H. Feibusch · Source

Text layers

Extracted body text (9,359c)

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 56424 / September 13, 2007
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 2704 / September 13, 2007
ADMINISTRATIVE PROCEEDING
File No. 3-12785
In the Matter of
Sanford H. Feibusch, CPA, PC
and Sanford H. Feibusch, CPA
Respondents.
ORDER INSTITUTING PUBLIC
ADMINISTRATIVE AND CEASE-AND-
DESIST PROCEEDINGS PURSUANT TO
SECTIONS 4C AND 21C OF THE
SECURITIES EXCHANGE ACT OF 1934
AND RULE 102(e) OF THE
COMMISSION’S RULES OF PRACTICE,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS AND A CEASE-
AND-DESIST ORDER
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate that public
administrative and cease-and-desist proceedings be, and hereby are, instituted against Sanford H.
Feibusch, CPA, PC and Sanford H. Feibusch, CPA (collectively “Respondents”) pursuant to
Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), and that public
administrative proceedings be, and hereby are, instituted against Sanford H. Feibusch, CPA, PC
pursuant to Section 4C
1
of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of
Practice.
2
1
Section 4C provides, in relevant part, that:
The Commission may censure any person, or deny, temporarily or permanently, to any person the
privilege of appearing or practicing before the Commission in any way, if that person is found . . .
to have willfully violated, or willfully aided and abetted the violation of, any provision of the
securities laws or the rules and regulations thereunder.
2
Rule 102(e)(1)(iii) provides, in relevant part, that:
The Commission may censure a person or deny, temporarily or permanently, the privilege of
appearing or practicing before it in any way to any person who is found . . . to have willfully
violated, or willfully aided and abetted the violation of any provision of the Federal securities laws
or the rules and regulations thereunder.

II.
In anticipation of the institution of these proceedings, Respondents have submitted an Offer
of Settlement (“Offer”), which the Commission has determined to accept. Solely for the purpose
of these proceedings and any other proceedings brought by or on behalf of the Commission, or to
which the Commission is a party, and without admitting or denying the findings herein, except as
to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are
admitted, Respondents consent to the entry of this Order Instituting Public Administrative and
Cease-and-Desist Proceedings Pursuant to Sections 4C and 21C of the Securities Exchange Act of
1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing
Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below.
III.
On the basis of this Order and Respondents’ Offer, the Commission finds
3
that:
A. RESPONDENTS
1. Sanford H. Feibusch, CPA, PC (the “Firm”) is a Nevada professional corporation
and a public accounting firm headquartered in Las Vegas, Nevada. The Firm audited Power-Save
Energy Company’s (“Power-Save”) financial statements for the company’s 2003 fiscal year ended
December 31, 2003.
2. Sanford H. Feibusch, CPA (“Feibusch”), 53, of Las Vegas, Nevada, is a certified
public accountant licensed during the relevant time period in the state of New York and currently
licensed in Nevada. Feibusch was the engagement partner in connection with the Firm’s audit of
Power-Save’s financial statements for the company’s 2003 fiscal year ended December 31, 2003.
B. FACTS
1. Power-Save (known as Safari Associates, Inc. during the relevant time period) is a
Utah corporation with its headquarters in San Luis Obispo, California. Power-Save’s common
stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is
traded on the OTC Bulletin Board under the symbol PWSV. For its fiscal year ended December
31, 2003, Power-Save reported revenues of $102,533 and total assets of $113,603.
2. Power-Save has at all relevant times been an issuer as defined by the Sarbanes-
Oxley Act of 2002 (the “Act”).
The findings herein are made pursuant to Respondents’ Offer of Settlement and are not binding on any
other person or entity in this or any other proceeding.
2

3. The Firm audited Power-Save’s 2003 financial statements included in Power-
Save’s annual report for fiscal year 2003 on Form 10-KSB, filed with the Commission on March
24, 2004. As part of that audit, the Firm prepared and issued an audit report dated March 22, 2004
(the “Power-Save audit report”), which the company included in its 2003 Form 10-KSB. Power-
Save never paid the Firm the $3,000 that the Firm invoiced for the audit work.
4. At the time the Firm prepared and issued the Power-Save audit report, it was not
registered with the Public Company Accounting Oversight Board (the “Board”), as required by
Section 102(a) of the Act.
5. Feibusch was the engagement partner on the Firm’s audit of Power-Save’s 2003
financial statements. Feibusch participated in the preparation and issuance of the Power-Save audit
report.
C. VIOLATIONS
1. Section 102(a) of the Act provides that “it shall be unlawful for any person that is
not a registered public accounting firm to prepare or issue, or to participate in the preparation or
issuance of, any audit report with respect to any issuer.”
4
2. The provisions of Section 102(a) of the Act became effective on October 22, 2003.
5
3. Based on the conduct described above, the Firm willfully
6
violated Section 102(a)
of the Act.
4. Based on the conduct described above, Feibusch caused the Firm’s violation of
Section 102(a) of the Act.
D. FINDINGS
Based on the foregoing, the Commission finds that the Firm willfully violated Section
102(a) of the Sarbanes-Oxley Act of 2002, and that Feibusch caused the Firm’s violation of
Section 102(a) of the Act.
4
A violation of the Act or any rule that the Board issues under the Act is treated for all purposes in the same
manner as a violation of the Exchange Act, including with respect to penalties. Sarbanes-Oxley Act of 2002, 15
U.S.C.A. § 7202(b)(1) (West 2002).
5
Section 102(a) became effective “[b]eginning 180 days after the date of the determination of the
Commission under Section 101(d)” of the Act that the Board was prepared to undertake its statutory responsibilities.
The Commission made the required determination on April 25, 2003. See
Order Regarding Section 101(d) of the
Sarbanes-Oxley Act of 2002, Securities Act Release No. 8223, Exchange Act Release No. 47746, 2003 WL
1956164 (Apr. 25, 2003).
6
“Willfully” as used in this Order means intentionally committing the act that constitutes the violation.
There is no requirement that the actor also be aware that he is violating a rule or statute. See Wonsover v. SEC, 205
F.3d 408, 414 (D.C. Cir. 2000); Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965).
3

E. UNDERTAKING
Respondents have undertaken not to request, demand, or accept, directly or indirectly, any
compensation from Power-Save in connection with the audit work associated with the Power-Save
audit report. In determining whether to accept the Offer, the Commission has considered this
undertaking.
IV.
In view of the foregoing, the Commission deems it appropriate to impose the sanctions
agreed to in Respondents’ Offer.
Accordingly, it is hereby ORDERED, effective immediately, that:
1. Sanford H. Feibusch, CPA, PC
A. The Firm shall cease and desist from committing or causing any violations
and any future violations of Section 102(a) of the Act.
B. The Firm is censured.
C. The Firm may practice before the Commission as an independent accountant
provided that:
1. The Firm is registered with the Board in accordance with the Act,
and such registration continues to be effective; and
2. The Firm has submitted to the Commission staff (attention: Office
of the Chief Accountant) the Board’s letter notifying the Firm that its registration application has
been approved.
2. Sanford H. Feibusch, CPA
A. Feibusch shall cease and desist from committing or causing any violations
and any future violations of Section 102(a) of the Act.
B. Feibusch may practice before the Commission as an independent accountant
provided that:
1. The public accounting firm with which he is associated is
registered with the Board in accordance with the Act, and such registration continues to be
effective; and
4

2. He has submitted to the Commission staff (attention: Office of the Chief
Accountant) the Board’s letter notifying the public accounting firm with which he is associated
that its registration application has been approved.
By the Commission.
Nancy M. Morris
Secretary
5

OCR text (8,926c · tika · 95% conf)

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 56424 / September 13, 2007

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 2704 / September 13, 2007

ADMINISTRATIVE PROCEEDING
File No. 3-12785

In the Matter of

Sanford H. Feibusch, CPA, PC
and Sanford H. Feibusch, CPA

Respondents.

ORDER INSTITUTING PUBLIC
ADMINISTRATIVE AND CEASE-AND
DESIST PROCEEDINGS PURSUANT TO
SECTIONS 4C AND 21C OF THE
SECURITIES EXCHANGE ACT OF 1934
AND RULE 102(e) OF THE
COMMISSION’S RULES OF PRACTICE,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS AND A CEASE
AND-DESIST ORDER

The Securities and Exchange Commission (“Commission”) deems it appropriate that public
administrative and cease-and-desist proceedings be, and hereby are, instituted against Sanford H.
Feibusch, CPA, PC and Sanford H. Feibusch, CPA (collectively “Respondents”) pursuant to
Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), and that public
administrative proceedings be, and hereby are, instituted against Sanford H. Feibusch, CPA, PC
pursuant to Section 4C1 of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of
Practice.2

1 Section 4C provides, in relevant part, that:

The Commission may censure any person, or deny, temporarily or permanently, to any person the
privilege of appearing or practicing before the Commission in any way, if that person is found . . .
to have willfully violated, or willfully aided and abetted the violation of, any provision of the
securities laws or the rules and regulations thereunder.

2 Rule 102(e)(1)(iii) provides, in relevant part, that:

The Commission may censure a person or deny, temporarily or permanently, the privilege of
appearing or practicing before it in any way to any person who is found . . . to have willfully
violated, or willfully aided and abetted the violation of any provision of the Federal securities laws
or the rules and regulations thereunder.

II.

In anticipation of the institution of these proceedings, Respondents have submitted an Offer
of Settlement (“Offer”), which the Commission has determined to accept. Solely for the purpose
of these proceedings and any other proceedings brought by or on behalf of the Commission, or to
which the Commission is a party, and without admitting or denying the findings herein, except as
to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are
admitted, Respondents consent to the entry of this Order Instituting Public Administrative and
Cease-and-Desist Proceedings Pursuant to Sections 4C and 21C of the Securities Exchange Act of
1934 and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing
Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below.

III.

On the basis of this Order and Respondents’ Offer, the Commission finds3 that:

A. RESPONDENTS

1. Sanford H. Feibusch, CPA, PC (the “Firm”) is a Nevada professional corporation
and a public accounting firm headquartered in Las Vegas, Nevada. The Firm audited Power-Save
Energy Company’s (“Power-Save”) financial statements for the company’s 2003 fiscal year ended
December 31, 2003.

2. Sanford H. Feibusch, CPA (“Feibusch”), 53, of Las Vegas, Nevada, is a certified
public accountant licensed during the relevant time period in the state of New York and currently
licensed in Nevada. Feibusch was the engagement partner in connection with the Firm’s audit of
Power-Save’s financial statements for the company’s 2003 fiscal year ended December 31, 2003.

B. FACTS

1. Power-Save (known as Safari Associates, Inc. during the relevant time period) is a
Utah corporation with its headquarters in San Luis Obispo, California. Power-Save’s common
stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is
traded on the OTC Bulletin Board under the symbol PWSV. For its fiscal year ended December
31, 2003, Power-Save reported revenues of $102,533 and total assets of $113,603.

2. Power-Save has at all relevant times been an issuer as defined by the Sarbanes-
Oxley Act of 2002 (the “Act”).

The findings herein are made pursuant to Respondents’ Offer of Settlement and are not binding on any
other person or entity in this or any other proceeding.

4. At the time the Firm prepared and issued the Power-Save audit report, it was not
registered with the Public Company Accounting Oversight Board (the “Board”), as required by
Section 102(a) of the Act.

5. Feibusch was the engagement partner on the Firm’s audit of Power-Save’s 2003
financial statements. Feibusch participated in the preparation and issuance of the Power-Save audit
report.

C. VIOLATIONS

1. Section 102(a) of the Act provides that “it shall be unlawful for any person that is
not a registered public accounting firm to prepare or issue, or to participate in the preparation or
issuance of, any audit report with respect to any issuer.”4

2. The provisions of Section 102(a) of the Act became effective on October 22, 2003.5

3. Based on the conduct described above, the Firm willfully6 violated Section 102(a)
of the Act.

4. Based on the conduct described above, Feibusch caused the Firm’s violation of
Section 102(a) of the Act.

D. FINDINGS

Based on the foregoing, the Commission finds that the Firm willfully violated Section
102(a) of the Sarbanes-Oxley Act of 2002, and that Feibusch caused the Firm’s violation of
Section 102(a) of the Act.

4 A violation of the Act or any rule that the Board issues under the Act is treated for all purposes in the same
manner as a violation of the Exchange Act, including with respect to penalties. Sarbanes-Oxley Act of 2002, 15
U.S.C.A. § 7202(b)(1) (West 2002).

5 Section 102(a) became effective “[b]eginning 180 days after the date of the determination of the
Commission under Section 101(d)” of the Act that the Board was prepared to undertake its statutory responsibilities.
The Commission made the required determination on April 25, 2003. See Order Regarding Section 101(d) of the
Sarbanes-Oxley Act of 2002, Securities Act Release No. 8223, Exchange Act Release No. 47746, 2003 WL
1956164 (Apr. 25, 2003).

6 “Willfully” as used in this Order means intentionally committing the act that constitutes the violation.
There is no requirement that the actor also be aware that he is violating a rule or statute. See Wonsover v. SEC, 205
F.3d 408, 414 (D.C. Cir. 2000); Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965).

E. UNDERTAKING

Respondents have undertaken not to request, demand, or accept, directly or indirectly, any
compensation from Power-Save in connection with the audit work associated with the Power-Save
audit report. In determining whether to accept the Offer, the Commission has considered this
undertaking.

IV.

In view of the foregoing, the Commission deems it appropriate to impose the sanctions
agreed to in Respondents’ Offer.

Accordingly, it is hereby ORDERED, effective immediately, that:

1. Sanford H. Feibusch, CPA, PC

A. The Firm shall cease and desist from committing or causing any violations
and any future violations of Section 102(a) of the Act.

B. The Firm is censured.

C. The Firm may practice before the Commission as an independent accountant
provided that:

1. The Firm is registered with the Board in accordance with the Act,
and such registration continues to be effective; and

2. The Firm has submitted to the Commission staff (attention: Office
of the Chief Accountant) the Board’s letter notifying the Firm that its registration application has
been approved.

2. Sanford H. Feibusch, CPA

A. Feibusch shall cease and desist from committing or causing any violations
and any future violations of Section 102(a) of the Act.

B. Feibusch may practice before the Commission as an independent accountant
provided that:

1. The public accounting firm with which he is associated is
registered with the Board in accordance with the Act, and such registration continues to be
effective; and

By the Commission.

Nancy M. Morris
Secretary