A final judgment was entered against Mr. McDonald in connection with a civil action filed by the U.S. Securities and Exchange Commission (SEC). Without admitting or denying the findings, Mr. McDonald was ordered to pay a $120,000 civil penalty and barred from serving as an officer or director of a publicly traded company for five years in connection with his conduct as Chief Financial Officer of a public company. Additionally, Mr. McDonald consented to the entry of an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission’s Rule of Practice, Making Findings, and Imposing Remedial Sanctions. Without admitting or denying the findings, Mr. McDonald was suspended from appearing or practicing before the SEC as an accountant with the right to apply for reinstatement after three years.
In consideration of the Ethics Charging Authority (ECA) forgoing further investigation of Mr. McDonald’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. McDonald agrees as follows:
a. To waive his rights to a hearing under AICPA bylaws Section 7.4 and to an investigation of this matter in accordance with the Joint Ethics Enforcement Program Manual of Procedures.
b. To expulsion from membership in the AICPA.
c. That the ECA shall publish his name and the terms of this settlement agreement in publications it deems appropriate.