Others mentioned that Sharlene Abrams is "Michelle" here and posted links but this link seems to be better [1].
Interestingly, this case was about backdating _executive_ options _including her own_. I can't claim any knowledge of what PWC did or didn't approve of and some casual searching hasn't found any action taken by the DOJ or the SEC against auditors in relation to SV option backdating (please correct me if I'm wrong).
A quick search found that at one point option grants needed to be reported within 2 months but the SEC changed this to 2 business days and some companies and individuals were indicted because they failed to do so. Was this after this case or before? I'm not sure on the timing.
Whatever the case, this seems pretty wilful non-compliance (and, arguably, fraud) so I'm not surprised some went to jail. I'd also be surprised if anyone thought backdating anything that affected tax and legal obligations was legal, particularly a CFO.
As for anyone who thinks those who commit this kind of fraud shouldn't go to jail, I'd say jail is about the one thing the rich are afraid of. If you have $20m then a $3m fine might suck but it's not the end of your world. A year in jail in so much worse.
> As for anyone who thinks those who commit this kind of fraud shouldn't go to jail, I'd say jail is about the one thing the rich are afraid of. If you have $20m then a $3m fine might suck but it's not the end of your world. A year in jail in so much worse.
Except the intention here obviously was not to defraud, but to follow the law, which was so incomprehensible as to make even professionals fall into its traps. And it's not "the rich" going to jail here, but the professionals that are responsible for making that mistake. Maybe that professional happens to be "rich", but most people involved will walk free, as long as there's a scapegoat.
No, people shouldn't go to jail for this. These regulations shouldn't even exist. Even "socialist Europe" isn't as bad as the US in this regard.
Interestingly, this case was about backdating _executive_ options _including her own_. I can't claim any knowledge of what PWC did or didn't approve of and some casual searching hasn't found any action taken by the DOJ or the SEC against auditors in relation to SV option backdating (please correct me if I'm wrong).
A quick search found that at one point option grants needed to be reported within 2 months but the SEC changed this to 2 business days and some companies and individuals were indicted because they failed to do so. Was this after this case or before? I'm not sure on the timing.
Whatever the case, this seems pretty wilful non-compliance (and, arguably, fraud) so I'm not surprised some went to jail. I'd also be surprised if anyone thought backdating anything that affected tax and legal obligations was legal, particularly a CFO.
As for anyone who thinks those who commit this kind of fraud shouldn't go to jail, I'd say jail is about the one thing the rich are afraid of. If you have $20m then a $3m fine might suck but it's not the end of your world. A year in jail in so much worse.
[1] http://retheauditors.com/2014/02/13/vc-horowitz-implicates-a...