Knapp, Arthur of San Jose, CA

Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Knapp’s AICPA membership was terminated, effective June 28, 2016, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Specifically, through an “Offer of Settlement”, and without admitting or denying the charges, the SEC suspended Mr. Knapp from appearing or practicing before the Commission as an accountant based on the SEC’s allegations that, among other things, that as CFO, Mr. Knapp had responsibility for the “Company’s” internal accounting controls and that he instituted or maintained several policies and practices that caused the “Corporation” to record transactions in a manner that was not in accordance with U.S. Generally Accepted Accounting Principles and caused the “Corporation” to report materially inflated revenues and/or gross profits.