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by Mike Caswell

The U.S. Securities and Exchange Commission has won fines of $75,000 and $50,000 against the auditors charged in the case against convicted fraudster Paul Bilzerian. (All figures are in U.S. dollars.) The SEC claims that the auditors failed to flag suspicious transactions as part of a scheme in which Mr. Bilzerian's company, Canadian Securities Exchange listing Ignite International Brands Ltd., reported $4.6-million in revenue that did not exist. The SEC is still pursuing Mr. Bilzerian for the scheme.

The fines are contained in two judgments filed on Dec. 20, 2024, in federal court in New York. The SEC has fined Florida's Accel Audit & Compliance PA and its managing director, Christopher Hiestand, with Accel to pay $75,000 and Mr. Hiestand to pay $50,000. The fines represent negotiated settlements, in which Accel and Mr. Hiestand have not admitted any wrongdoing.

The penalties come with Mr. Bilzerian, a resident of St. Kitts, yet to respond to the charges. He is also wanted by federal prosecutors in California, who have a warrant for his arrest on criminal charges related to the scheme. The criminal charges against Mr. Bilzerian, 74, include one count of conspiracy to commit wire fraud and securities fraud and four counts of wire fraud. Also charged criminally is Scott Rohleder, 61, a North Carolina resident who was Mr. Bilzerian's long-time accountant.

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