IN THE MATTER OF SCHUHALTER, COUGHLIN & SUOZZO PC, AND EDWARD
The SEC charged accounting firm Schuhalter, Coughlin & Suozzo PC and its CPA Edward J. Suozzo with willfully violating Section 102(a) of the Sarbanes-Oxley Act by issuing a 2003 audit report for a public company without registering with the PCAOB, leading to administrative proceedings seeking potential censure or permanent denial of their right to practice before the SEC.
The U.S. Securities and Exchange Commission initiated administrative proceedings against Schuhalter, Coughlin & Suozzo PC and its CPA Edward J. Suozzo for issuing an audit report on a public company’s 2003 financial statements without registering with the Public Company Accounting Oversight Board (PCAOB), as required by Section 102(a) of the Sarbanes-Oxley Act after October 22, 2003. The SEC alleged this conduct was a willful violation that rendered the firm and Suozzo unqualified to represent others before the Commission. No financial misstatements or monetary penalties were cited; the proceeding focuses solely on professional sanctions, including potential censure or permanent denial of their privilege to practice before the SEC.
The U.S. Securities and Exchange Commission (SEC) filed an Order Instituting Administrative Proceedings against Schuhalter, Coughlin & Suozzo PC and its CPA Edward J. Suozzo for violating Section 102(a) of the Sarbanes-Oxley Act of 2002. The violation stemmed from the firm’s issuance of an audit report on a public company’s 2003 financial statements without first registering with the Public Company Accounting Oversight Board (PCAOB), a requirement that became effective on October 22, 2003. The SEC alleged that this act was willful and rendered both the firm and Suozzo unqualified to represent others before the Commission. No allegations of financial fraud, misstatement, or monetary loss were included—the case centered exclusively on regulatory non-compliance. The SEC initiated proceedings under Section 4C of the Securities Exchange Act and Rule 102(e) of its Rules of Practice, seeking potential censure or permanent denial of their privilege to appear before the Commission. A hearing was scheduled before an administrative law judge to determine the truth of the allegations and appropriate sanctions, with an initial decision required within 300 days of service. The case underscores the SEC’s enforcement of PCAOB registration requirements as a foundational element of audit integrity under Sarbanes-Oxley.
Extracted insights
- person administrative law judge
- agency Securities and Exchange Commission
- SEC announced Order Instituting Administrative Proceedings against Schuhalter, Coughlin & Suozzo PC and Edward J. Suozzo, CPA
- Schuhalter, Coughlin & Suozzo PC prepared and issued audit report on financial statements of public company in 2003
- Edward J. Suozzo, CPA participated in preparation and issuance of audit report on financial statements of public company in 2003
- Schuhalter, Coughlin & Suozzo PC violated Section 102(a) of the Sarbanes-Oxley Act of 2002
- Schuhalter, Coughlin & Suozzo PC and Edward J. Suozzo, CPA lacked requisite qualifications to represent others
- Schuhalter, Coughlin & Suozzo PC failed to register with Public Company Accounting Oversight Board
- SEC instituted proceedings against Schuhalter, Coughlin & Suozzo PC and Edward J. Suozzo, CPA pursuant to Section 4C of Securities Exchange Act of 1934
- Administrative Law Judge directed to issue initial decision no later than 300 days from date of service of Order
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES EXCHANGE ACT OF 1934 Release No. 56434 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2714 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12795 IN THE MATTER OF SCHUHALTER, COUGHLIN & SUOZZO PC, AND EDWARD J. SUOZZO, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice (Order) against Schuhalter, Coughlin & Suozzo PC (Schuhalter PC) and Edward J. Suozzo, CPA (Suozzo). The Order alleges that Schuhalter PC prepared and issued and Suozzo participated in the preparation and issuance of an audit report on the financial statements of a public company in 2003, 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, Schuhalter PC and Suozzo lacked the requisite qualifications to represent others and that Schuhalter PC willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Schuhalter PC and Suozzo pursuant to Section 4C(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 102(e)(1)(i) of the Commission’s Rules of Practice, and additionally as to Schuhalter PC, Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, and whether they 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 Schuhalter PC and Suozzo 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.
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES EXCHANGE ACT OF 1934 Release No. 56434 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2714 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12795 IN THE MATTER OF SCHUHALTER, COUGHLIN & SUOZZO PC, AND EDWARD J. SUOZZO, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice (Order) against Schuhalter, Coughlin & Suozzo PC (Schuhalter PC) and Edward J. Suozzo, CPA (Suozzo). The Order alleges that Schuhalter PC prepared and issued and Suozzo participated in the preparation and issuance of an audit report on the financial statements of a public company in 2003, 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, Schuhalter PC and Suozzo lacked the requisite qualifications to represent others and that Schuhalter PC willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Schuhalter PC and Suozzo pursuant to Section 4C(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 102(e)(1)(i) of the Commission’s Rules of Practice, and additionally as to Schuhalter PC, Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, and whether they 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 Schuhalter PC and Suozzo 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.