Croft, Steven of Manhattan, KS

Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Croft’s AICPA membership was suspended for two years, effective October 20, 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 denied Mr. Croft the privilege of appearing or practicing before the Commission as an accountant with the right to apply for reinstatement after one year from the effective date of the SEC’s Order. This decision was based on the SEC’s findings that Mr. Croft, Controller, improperly reversed required accruals to improve his segment’s results; Mr. Croft failed to comply with internal accounting controls by not reporting internally, as required, that he had corrected a $730,000 error recorded in 2012 that increased his segment’s operating results in the first quarter of 2013; and for failing to comply with internal accounting controls by directing that his business unit switch to a new accounting system before obtaining assurance that the new system would operate properly. This failure resulted in errors that significantly overstated the segment’s result in two quarterly periods in 2014.