Investigating Potential Securities Claims involving ACP X LLP
According to an SEC administrative order on March 22, 2022, The Securities and Exchange Commission announced charges against an accounting and auditing firm involving allegedly improper professional conduct in their 2015 and 2016 audits of $17 million private equity fund ACP X, LLP.
In 2019, the Office of the New York Attorney General reportedly charged the owner of ACP X with defrauding investors, according to the notice. The owner purportedly invested at least 20% of ACP X’s funds in securities issued by NYPPEX Holdings, LLC, the owner of a registered broker dealer that he allegedly controlled.
The engagement partner for the audits of ACP X LLP allegedly approved the issuance of 2015 and 2016 audit reports for ACP X, which were issued in 2017 and 2018 despite having strong indications that its valuations of NYPPEX Holdings’ securities were speculative, based on inflated revenue projections, and used inconsistent inputs, according to the SEC’s complaint.
According to the SEC’s findings, the auditing firm and its owner purportedly failed to adhere to ‘Generally Accepted Accounting Standards’ in planning and performing the audits of ACP X’s 2015 and 2016 financial statements and preparing the audit reports on those statements.
The alleged failures occurred in the most critical areas of the audit – the valuation of portfolio assets, according to the complaint. The firm allegedly engaged in improper professional conduct by engaging in at least a single instance of highly unreasonable or, at a minimum, repeated instances of unreasonable conduct.
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Tags: ACP X LLP complaints, ACP X LLP fraud charges, ACP X LLP investigation, ACP X LLP lawsuit, NYPPEX Holdings, securities fraud attorneys Last modified: May 16, 2022