McGrath, Michael – Quincy, IL

Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. McGrath’s AICPA membership was terminated, effective April 10, 2014, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Specifically, the SEC suspended Mr. McGrath from appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s findings that in Mr. McGrath’s position as CFO of a “Company”, he (1) failed to report a loan loss, causing the “Company” to falsely state that its main subsidiary bank had met certain capital ratio thresholds required by the FDIC; (2) understated the “Company’s” net loss for the quarter and the nine months ending September 30, 2010; and (3) for misleading the “Company’s” outside auditor and circumvented the company’s internal accounting controls.