The United States Securities and Exchange Commission (Commission) announced the
Michael Deutchman, a CPA, was charged by the SEC with willfully violating Section 102(a) of the Sarbanes-Oxley Act by issuing a 2004 audit report for a public company without registering with the PCAOB, leading to administrative proceedings seeking a cease-and-desist order and potential ban from practicing before the SEC.
The SEC alleged that Michael Deutchman, a certified public accountant, knowingly prepared and issued an audit report for a public company in 2004 without being registered with the Public Company Accounting Oversight Board (PCAOB), in direct violation of Section 102(a) of the Sarbanes-Oxley Act, which mandated such registration after October 22, 2003. The SEC charged him with willfully violating federal securities laws and lacking the requisite qualifications to practice before the Commission, triggering proceedings under Sections 4C and 21C of the Securities Exchange Act and Rule 102(e). The action seeks a cease-and-desist order, possible censure, and either temporary or permanent denial of his privilege to appear or practice before the SEC, with no monetary penalties sought.
The U.S. Securities and Exchange Commission (SEC) initiated administrative and cease-and-desist proceedings against Michael Deutchman, a certified public accountant, for knowingly preparing and issuing an audit report on the financial statements of a public company in 2004 without being registered with the Public Company Accounting Oversight Board (PCAOB). This conduct violated Section 102(a) of the Sarbanes-Oxley Act of 2002, which explicitly prohibited unregistered accounting professionals from issuing audit reports for public companies after October 22, 2003. The SEC alleged that Deutchman’s actions were willful and demonstrated a lack of qualification to represent others before the Commission, thereby undermining audit integrity and regulatory compliance. Proceedings were brought under Sections 4C and 21C of the Securities Exchange Act and Rule 102(e) of the SEC’s Rules of Practice, seeking a cease-and-desist order and potential sanctions including censure or permanent denial of his right to practice before the SEC. No monetary penalties were sought, as the focus was on professional conduct and licensing discipline. A hearing before an administrative law judge was scheduled to determine the validity of the allegations and appropriate sanctions, with an initial decision required within 300 days of service of the Order. Deutchman was afforded the opportunity to contest the charges and present his defense during the proceedings.
Extracted insights
- person Michael Deutchman
- organization Public Company Accounting Oversight Board
- agency the united states securities and exchange commission
- organization United States Securities And Exchange Commission
- The United States Securities and Exchange Commission announced the issuance of an Order Instituting Administrative and Cease-and-Desist Proceedings
- The Order alleges that Deutchman knowingly prepared and issued an audit report on the financial statements of a public company in 2004
- The Order alleges that Deutchman lacked the requisite qualifications to represent others
- The Order alleges that Deutchman willfully violated Section 102(a) of the Sarbanes-Oxley Act
- The Order institutes cease-and-desist proceedings against Deutchman pursuant to Section 21C of the Securities Exchange Act of 1934
- The Order institutes proceedings under Sections 4C(a)(1) and 4C(a)(3) of the Exchange Act and Rules 102(e)(1)(i) and 102(e)(1)(iii) of the Commission’s Rules of Practice
- The Order directs the Administrative Law Judge to issue an initial decision in this matter no later than 300 days from the date of service of the Order
ADMINISTRATIVE RELEASE SECURITIES EXCHANGE ACT OF 1934 Release No. 56433 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2713 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12794 IN THE MATTER OF MICHAEL DEUTCHMAN, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting 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 (Order) against Michael Deutchman, CPA (Deutchman). The Order alleges that Deutchman, a certified public accountant, knowingly prepared and issued an audit report on the financial statements of a public company in 2004, without first registering with the Public Company Accounting Oversight Board (Board). Section 102(a) of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) prohibits accounting firms not registered with the Board from preparing or issuing audit reports with respect to any issuer after October 22, 2003. The Order alleges that, by this conduct, Deutchman lacked the requisite qualifications to represent others and willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes cease-and-desist proceedings against Deutchman pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act), as well as proceedings under Sections 4C(a)(1) and 4C(a)(3) of the Exchange Act and Rules 102(e)(1)(i) and 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, whether a cease-and-desist order should be entered against Deutchman and whether he should be censured or temporarily or permanently denied the privilege of appearing or practicing before the Commission as an accountant. A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true, to provide Deutchman an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate. The Order directs the Administrative Law Judge to issue an initial decision in this matter no later than 300 days from the date of service of the Order.
ADMINISTRATIVE RELEASE SECURITIES EXCHANGE ACT OF 1934 Release No. 56433 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2713 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12794 IN THE MATTER OF MICHAEL DEUTCHMAN, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting 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 (Order) against Michael Deutchman, CPA (Deutchman). The Order alleges that Deutchman, a certified public accountant, knowingly prepared and issued an audit report on the financial statements of a public company in 2004, without first registering with the Public Company Accounting Oversight Board (Board). Section 102(a) of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) prohibits accounting firms not registered with the Board from preparing or issuing audit reports with respect to any issuer after October 22, 2003. The Order alleges that, by this conduct, Deutchman lacked the requisite qualifications to represent others and willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes cease-and-desist proceedings against Deutchman pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act), as well as proceedings under Sections 4C(a)(1) and 4C(a)(3) of the Exchange Act and Rules 102(e)(1)(i) and 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, whether a cease-and-desist order should be entered against Deutchman and whether he should be censured or temporarily or permanently denied the privilege of appearing or practicing before the Commission as an accountant. A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true, to provide Deutchman an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate. The Order directs the Administrative Law Judge to issue an initial decision in this matter no later than 300 days from the date of service of the Order.