SEC Press pdf 52 KB 2,277 chars

IN THE MATTER OF RICHARD E. SELLERS, CPA AND LESTER REX

summary

Richard E. Sellers and Lester Rex Andersen, CPAs, were charged by the SEC with knowingly causing their firm, Sellers & Andersen, LLC, to issue audit reports for five public companies after October 22, 2003, without registering with the PCAOB as required by Sarbanes-Oxley Act, leading to administrative proceedings seeking to bar them from practicing before the SEC.

paragraph

Richard E. Sellers and Lester Rex Andersen, certified public accountants and partners of Sellers & Andersen, LLC, were accused by the SEC of willfully causing their firm to issue audit reports for five public companies after October 22, 2003, without registering with the Public Company Accounting Oversight Board (PCAOB), in violation of Section 102(a) of the Sarbanes-Oxley Act. The SEC alleged that they knowingly aided and abetted these violations and lacked the qualifications to represent clients before the Commission. Administrative and cease-and-desist proceedings were initiated under Sections 4C and 21C of the Securities Exchange Act and Rule 102(e), seeking censure and denial of their privilege to practice before the SEC, with no monetary penalties specified.

narrative

Richard E. Sellers and Lester Rex Andersen, certified public accountants and partners of Sellers & Andersen, LLC, were charged by the U.S. Securities and Exchange Commission with knowingly causing their firm to issue audit reports for five public companies after October 22, 2003, without registering with the Public Company Accounting Oversight Board (PCAOB), in direct violation of Section 102(a) of the Sarbanes-Oxley Act. The SEC alleged that both individuals were aware of the legal requirement for PCAOB registration but failed to ensure compliance, thereby willfully aiding and abetting their firm’s unlawful conduct. As a result, the SEC initiated administrative and cease-and-desist proceedings under Sections 4C and 21C of the Securities Exchange Act and Rule 102(e) of its Rules of Practice. The proceedings sought to determine whether Sellers and Andersen should be censured, denied the privilege of appearing or practicing before the Commission, or otherwise sanctioned for their professional misconduct. No monetary penalties were sought, as the focus was on regulatory compliance and professional accountability. The case was assigned to an Administrative Law Judge, who was directed to issue an initial decision within 300 days of service of the Order. The matter underscored the SEC’s enforcement priority on adherence to PCAOB registration requirements for firms auditing public companies.

Enriched metadata

Scheme
accounting-fraud (100%)
Classified accounting-fraud(confidence 100%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Sections 4C and 21C of the Securities Exchange ActSections 4C and 21C of the Securities Exchange Act
Parties
Securities and Exchange CommissionRichard E. SellersLester Rex Andersen
Keywords
sellersrichard sellerssecurities exchangeandersenordersellers andersenexchangecommissionmatter richardexchange commissionrichardlesterrexsecuritiesmatter

Extracted insights

Entities 1
  • agency the united states securities and exchange commission
Triples 7
  • The United States Securities and Exchange Commission announced the issuance of an Order Instituting Administrative and Cease-and-Desist Proceedings
  • Richard E. Sellers and Lester Rex Andersen caused their accounting firm, Sellers & Andersen, LLC to prepare and issue audit reports on the financial statements of five reporting companies
  • Section 102(a) of the Sarbanes-Oxley Act of 2002 prohibits accounting firms not registered with the Board from preparing or issuing audit reports with respect to any issuer after that date
  • Sellers and Andersen lacked the requisite qualifications to represent others
  • Sellers and Andersen willfully aided and abetted and caused S&A’s violations of Section 102(a) of the Sarbanes-Oxley Act
  • The Order institutes cease-and-desist proceedings against Sellers and Andersen pursuant to Section 21C of the Securities Exchange Act of 1934
  • 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
Text layers
Extracted body text (2,277c)

U.S. SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 

SECURITIES EXCHANGE ACT OF 1934 
Release No. 56436 / September 13, 2007 
ACCOUNTING AND AUDITING ENFORCEMENT 
Release No. 2716 / September 13, 2007 
ADMINISTRATIVE PROCEEDING 
File No. 3-12797 
IN THE MATTER OF RICHARD E. SELLERS, CPA AND LESTER REX 
ANDERSEN, 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 Richard E. Sellers and Lester Rex 
Andersen. 
The Order alleges that Richard E. Sellers (Sellers) and Lester Rex Andersen (Andersen), 
both certified public accountants, knowingly caused their accounting firm, Sellers & 
Andersen, LLC (S&A), to prepare and issue audit reports on the financial statements of 
five reporting companies after October 22, 2003, without first registering S&A 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 that 
date. The Order alleges that, by their conduct, Sellers and Andersen lacked the requisite 
qualifications to represent others and willfully aided and abetted and caused S&A’s 
violations of Section 102(a) of the Sarbanes-Oxley Act.   
Based on the above, the Order institutes cease-and-desist proceedings against Sellers and 
Andersen pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act), 
as well as proceedings under Section 4C(a)(1) and (3) of the Exchange Act and Rules 
102(e)(1)(i) and (iii) of the Commission’s Rules of Practice, to determine whether the 
allegations in the Order are true, whether cease-and-desist orders should be entered against 
Sellers and Andersen and whether they should be censured or denied the privilege of 
appearing or practicing before the Commission as accountants.  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. 
OCR text (2,281c · tika · 95% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 


SECURITIES EXCHANGE ACT OF 1934 
Release No. 56436 / September 13, 2007 

ACCOUNTING AND AUDITING ENFORCEMENT 
Release No. 2716 / September 13, 2007 

ADMINISTRATIVE PROCEEDING 
File No. 3-12797 

IN THE MATTER OF RICHARD E. SELLERS, CPA AND LESTER REX 
ANDERSEN, 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 Richard E. Sellers and Lester Rex 
Andersen. 

The Order alleges that Richard E. Sellers (Sellers) and Lester Rex Andersen (Andersen), 
both certified public accountants, knowingly caused their accounting firm, Sellers & 
Andersen, LLC (S&A), to prepare and issue audit reports on the financial statements of 
five reporting companies after October 22, 2003, without first registering S&A 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 that 
date. The Order alleges that, by their conduct, Sellers and Andersen lacked the requisite 
qualifications to represent others and willfully aided and abetted and caused S&A’s 
violations of Section 102(a) of the Sarbanes-Oxley Act.   

Based on the above, the Order institutes cease-and-desist proceedings against Sellers and 
Andersen pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act), 
as well as proceedings under Section 4C(a)(1) and (3) of the Exchange Act and Rules 
102(e)(1)(i) and (iii) of the Commission’s Rules of Practice, to determine whether the 
allegations in the Order are true, whether cease-and-desist orders should be entered against 
Sellers and Andersen and whether they should be censured or denied the privilege of 
appearing or practicing before the Commission as accountants.  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.