Upholding SEC Authority To Discipline Accountants

Law360, New York (August 27, 2009, 1:43 PM EDT) -- Late last month, in Dearlove v. Securities & Exchange Commission,[1] the U.S. Court of Appeals for the D.C. Circuit upheld a decision of the U.S. Securities and Exchange Commission suspending an accountant from practice before the SEC pursuant to Commission Rule of Practice 102(e).

The decision is the first litigated proceeding upholding a suspension of an accountant for audit work that the SEC has found negligent under subsection (B)(2) of the rule.

It reflects a dramatic change in approach from that employed by the same court...
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