The U.S. Securities and Exchange Commission took aim Wednesday at Stephen Pence, a former Dinsmore & Shohl partner, federal prosecutor and lieutenant governor of Kentucky, amid fraud allegations surrounding BDO USA LLP’s audit of the staffing company General Employment Enterprises Inc.
In a statement announcing the claims and string of related settlements with BDO and others, the SEC said the auditor overlooked red flags and made misleading statements related to General Employment’s 2009 audit. The SEC’s allegations stem from the disappearance and re-appearance of $2.3 million from General Employment’s cash reserves shortly before the company filed its annual SEC Form 10-K disclosure for the 2009 fiscal year.
