SEC Charges Partner at Accounting Firm with Failing to Address Quality Control Issues

On September 12, 2023, without admitting or denying the findings, Alfonse Gregory Giugliano, CPA,  the former National Assurance Services Leader at Marcum LLP (“Marcum”), settled with the SEC for alleged violations related to Marcum’s quality control system. The settled order follows the SEC’s June 21, 2023 settled order with Marcum, covered in our June 23, 2023 Bulletin.

According to the SEC, Giugliano oversaw quality control for Marcum’s public company practice and was aware of numerous deficiencies in Marcum’s quality control system, including those identified through PCAOB inspections. The SEC alleges that Giugliano failed to sufficiently address and remediate those deficiencies.

The SEC’s order alleges that Giugliano engaged in improper professional conduct under Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e) of the SEC’s Rules of Practice, and that he caused Marcum to violate Rule 2-02(b)(1) of Regulation S-X. The SEC’s order imposed a civil penalty of $75,000, a censure, and restricted Giugliano’s activities for a period of three years, prohibiting him from having any leadership, management, oversight, or supervisory position at any registered public accounting firm.

The SEC press release is available here, and the settled order is available here.