Code of Professional Ethics and Conduct
Code of Professional Ethics and Conduct
Integrity and Objectivity
According to the American Institute of CPAs (AICPA) Code of Professional Conduct, Section 102 is Integrity and Objectivity. Rule 102 states that “in the performance of any professional service, a member should maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to other” (http://www.aicpa.org). Mr. John Irwin made materially false and misleading statements to existing and potential investors in connection with a Ponzi scheme and failed to disclose to investors that he was receiving a percentage of fees as compensation for helping to establish the fund. From February 1995 to December 2008, it was alleged John Irwin participated in a multi-million dollar Ponzi scheme orchestrated by Joseph S. Forte by soliciting investors for Forte LP and performed back office and bookkeeping functions for Forte LP that including creating and issuing to investors false quarterly statements and tax documents prepared based on false information provided by Forte. Mr. Irwin disregarded red flags that should have alerted him that the information he was passing on was false which over time allowed him to receive ill-gotten gains exceeding $5 million in purported fees and trading profits. John Irwin violated section 102.01 knowing misrepresentations in the preparation of financial statements or records and section 102.02 conflicts of interest. Mr. Irwin made false and misleading entries to the statements and records and failed to correct his mistakes and knew what he was doing was wrong. Since he was also receiving compensation for helping to establish a fund, that puts him as a conflict of interest because he now has a relationship with this company and will do whatever it takes to make this company look good financially. On July 11, 2011, the Securities and Exchange Commission (SEC) settled the civil action case
Integrity and Objectivity
According to the American Institute of CPAs (AICPA) Code of Professional Conduct, Section 102 is Integrity and Objectivity. Rule 102 states that “in the performance of any professional service, a member should maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to other” (http://www.aicpa.org). Mr. John Irwin made materially false and misleading statements to existing and potential investors in connection with a Ponzi scheme and failed to disclose to investors that he was receiving a percentage of fees as compensation for helping to establish the fund. From February 1995 to December 2008, it was alleged John Irwin participated in a multi-million dollar Ponzi scheme orchestrated by Joseph S. Forte by soliciting investors for Forte LP and performed back office and bookkeeping functions for Forte LP that including creating and issuing to investors false quarterly statements and tax documents prepared based on false information provided by Forte. Mr. Irwin disregarded red flags that should have alerted him that the information he was passing on was false which over time allowed him to receive ill-gotten gains exceeding $5 million in purported fees and trading profits. John Irwin violated section 102.01 knowing misrepresentations in the preparation of financial statements or records and section 102.02 conflicts of interest. Mr. Irwin made false and misleading entries to the statements and records and failed to correct his mistakes and knew what he was doing was wrong. Since he was also receiving compensation for helping to establish a fund, that puts him as a conflict of interest because he now has a relationship with this company and will do whatever it takes to make this company look good financially. On July 11, 2011, the Securities and Exchange Commission (SEC) settled the civil action case