Newport Beach-based Anton & Chia LLP, ranked on the Business Journal’s list of Orange County accounting firms, is disputing civil fraud allegations brought by the Securities and Exchange Commission involving penny stocks.
“We dispute all the claims,” co-owner Gregory A. Wahl said in an interview. “There are two sides to every story.
“This is a situation of the big, bad government picking on small companies.”
No hearing has been scheduled, according to the SEC website, and Wahl said he doesn’t anticipate one for at least a year. The case will be heard before an administrative law judge who’ll prepare an initial decision outlining what, if any, remedial actions should be taken.
The firm “ignored numerous indications of fraudulent financial reporting” by three clients, SEC’s enforcement division said in a statement. The three publicly traded client firms, which were also charged and trade for under 25 cents a share, are Premier Holding Corp. in Tustin (OTC: PRHL), Accelera Innovations Inc. of Frankfort, Ill., (OTC: ACNV) and CannaVEST Corp., now known as CV Sciences Inc. in Las Vegas (OTC: CVSI).
“Anton & Chia and its accountants left investors with false assurances that financial information for three microcap companies had been properly audited or reviewed,” Steven Peikin, co-director of the SEC enforcement division, said in the statement. “They had the opportunity to stop multiple frauds in their tracks but failed to do so.”
Anton & Chia co-owners Wahl and Georgia Chung, former partner Michael Deutchman and former audit manager Tommy Shek were charged along with the firm for their roles in the audits, the SEC said.
Partner Richard J. Koch and former partner Rahuldev Gandhi settled SEC charges for their parts in the audits and interim reviews. They each agreed to pay $15,000 in penalties and be suspended from appearing and practicing before the SEC as accountants, which includes exclusion from financial reporting or audits of public companies. Gandhi is permitted to apply for reinstatement after three years, and Koch can apply after two years.
Services
In July, Anton & Chia ranked No. 26 on the Business Journal’s annual list of accounting firms and has been on the list since 2013. It employs 46 in OC, including 15 certified public accountants and seven partners, and says it services 2,400 small to middle-market clients in the U.S., Canada, China, Europe, Mexico, South America and South East Asia.
Anton & Chia describes itself as a full-service accounting, tax and advisory firm in the U.S. and Canada with an international network through joint ventures with Zhonghui Anton of China and Consultoria Aguero Ruiz y Asociados of Mexico.
