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Thread: Shacknai Accountants Given Largest Fine Ever!

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    Shacknai Accountants Given Largest Fine Ever!

    Ernst & Young fined two million dollars involving past audits of Medicis Pharmaceutical Corp.

    http://www.firstpost.com/fwire/us-wa...ts-207992.html

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    Wow!!! No wonder Jonah didn't want anymore poking around. Gahhh!!!
    JMO, MOO, Doing my best. I am not perfect and I don't expect you to be either.

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    Gaining Steam

    Quote Originally Posted by Mrs. Holmes View Post
    Ernst & Young fined two million dollars involving past audits of Medicis Pharmaceutical Corp.

    http://www.firstpost.com/fwire/us-wa...ts-207992.html
    I've stayed in the background on this case for a while, but have a couple of things to say to all of you at WebSleuths and Hinky. Thank you Mrs. Holmes for the above.

    1) Check out film WEST OF MEMPHIS about Memphis 3:

    http://www.westofmemphisfilm.com/

    2) Check out Enimen's "Tha 118"

    http://studiospy.co.uk/post/14609699...-album-tha-118

    3) Movement to connect Eminem, the Coronado murders, Rebecca Zahau's (IMO murder), the Zahau family, Ann Bremner, and all those seeking justice for Rebecca in this case?
    Last edited by CalElliot; 02-11-2012 at 12:19 AM.

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    Quote Originally Posted by CalElliot View Post
    I've stayed in the background on this case for a while, but have a couple of things to say to all of you at WebSleuths and Hinky. Thank you Mrs. Holmes for the above.

    1) Check out film WEST OF MEMPHIS about Memphis 3:

    http://www.westofmemphisfilm.com/

    2) Check out Enimen's "Tha 118"

    http://studiospy.co.uk/post/14609699...-album-tha-118

    3) Movement to connect Eminem, the Coronado murders, Rebecca Zahau's (IMO murder), the Zahau family, Ann Bremner, and all those seeking justice for Rebecca in this case?
    If you read the info at the studiospy link, it states that the info came from satyrical blogger Walter Mencken . The info at that site shouldn't be taken seriously. I'm not sure if you are saying the WM3 is somehow associated with this case too or just want people to watch the film???

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    Im saying it seems worth bringing Zahau case to the attention of the music and film industries, which stood behind the Memphis 3 to get them out of prison (Eddie Vedder, Dixie Chicks, Johnny Depp, Peter Jackson). I don't know if the Eminem news re 118 is legit or not, but worth getting Rebecca Zahau family's plight out there to someone who can get this case heard by mass media public.

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    PS Thanks for pointing out Mencken but what's that saying about "any publicity is..."?

    http://www.highlighthollywood.com/20...ood-exclusive/

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    Quote Originally Posted by CalElliot View Post
    PS Thanks for pointing out Mencken but what's that saying about "any publicity is..."?

    http://www.highlighthollywood.com/20...ood-exclusive/
    I'm sorry CalElliot, I misunderstood your post. I do agree. If this brings the case publicity, I'm all for it!!

    I stlll think there is too much of a coincidence with the way she was found and the Asian bondage sites that were found on the pc's at the home...or was that what AS was watching on his phone the hours prior to Rebecca's death?? I have to read the threads again so I keep my facts straight.

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    JS's company was engaged in serious misrepresentations of their financial situation. To have to pay back money to investors and then to have their accountants receive a record breaking FINE ..... it says so much about JS.

    The fact that he was able to push his "accounting" agenda with this company and get them in very serious trouble that ruins their reputation. Wow... who else is he able to convince to do what he wants even if it is illegal?

    We know JS was involved in domestic violence in his previous relationships. Very scary man. When people in his care that should be the most protected end up dead.

    And something new I picked up on Hinky. Marks on DS that were seen in the photograph look similiar to marks on AZ described in the
    autopsy report. It could be a left hand that did that. Did DS cover for JS and say it was the dog? That whole domestic incident got wrapped up very PR like.

    I wonder how connected DS is to JS now that their child is dead. I wonder how financially dependent she is on him at this point. Then again who would dare to come forward look what happens to people around him.

    If a man will lie to his shareholders, become involved in domestic incidents with his ex-wives... it makes me wonder if JS lost his temper with Max that fateful morning. There were major issues going on with JS and his company that summer because of this investigation. They didn't know how things were going to turn out and it wasn't looking good. If a man will beat on his wife he will beat on his children especially during times of extreme stress. Maybe RZ was killed because she knew what JS had done.That information would have given her ultimate power over him. Knowing there was going to be an investigation into exactly what happened to Max maybe JS decided to get rid of her quickly before she could say anything to anyone else. The message takes the blame away from RZ and JS and puts it on a stranger. It still looks to me that the murder was made to look like an intruder murder. It looked to me that someone wanted to deflect away from JS with that message. I wonder what RZ's little sister has to say about who was in the house that morning. I hope they are keeping a close eye on her because if the above is true she could be in grave danger. The stories about JS texting her even when the family asked him to stop is very troubling. Wouldn't we just love to know what is in those texts?

    My opinion only.
    Last edited by Mrs. Holmes; 02-25-2012 at 03:08 PM.

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    When I look at some of the facts we know and add the stress of the company being under investigation that summer. I believe JS exercised a large option just a week before the deaths. Possibly a cash out just in case things were going to go very south with his company. They ended up paying out seven million to investors and now the accountants get a two million dollar fine. I wonder what kind of telephone calls JS might have gotten that morning of possible bad news about the investigation?

    If RZ witnessed or was obviously in the home when MS was badly hurt and it was due in part or whole because of JS's actions. Maybe MS was running away from his dad who was in a rage and tripped at the top of the stairs? Does JS leave the house not realizing how badly his son was hurt? Is it an odd coincidence that the gym where JS was supposed to be at the time of his son's accident CLOSES? Does RZ remove her sister and her dog as fast as she can because she feels they are in danger from JS? Does RZ shower and sleep in the guest room because the relationship is so strained by this terrible incident? Does JS come back to the house to try to stop her from leaving him and restrains her because he knows she is going to leave him and she knows what he did to his son? DS and JS did not spend alot of time together at their son's bedside they were taking turns. Maybe RZ was not with JS at the hospital and hotel because she is the one that did not want to be with him..... knowing what he did.

    Does RZ hug NR so tightly for a minute and almost blurt out the truth and then clams up when she picked her up from the airport. At that point would RZ be in FULL realization why his wives left JS... and feel that kind of OMG bond.... when she sees NR the sister...

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    Is this normal? There are ALOT of jobs available at Medicis!!

    http://medicis.com/employ/careers_apply_now.asp


    You would have to re-think working there after the CEO is involved in these terrible and suspicious deaths and then the company is
    found guilty of misleading shareholders and then the accounting firm is given the highest fine ever for their accounting practices related
    to Medicis.

    If I had a choice of a different job I would not stay working there.. not something you want on your resume and have to explain.

    A great deal of stocks from insiders being sold off in the last few weeks...
    Alot of stock being sold off by company insiders in the last few weeks at Medicis... 28 transactions

    http://www.marketwatch.com/investing...insideractions

    You also have to swallow hard at some award saying they are top ethical company in 2011?????
    Last edited by Mrs. Holmes; 03-14-2012 at 12:30 PM.

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    Well, I should have realized it was time for Jonah to give the Medicis Second Quarter 2012 Financial Results about now since we saw that last year. It makes me wonder about Dina's timing - coincidence?

    http://www.bizjournals.com/phoenix/n...et-income.html

    August 8, 2012

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  22. #12
    I'm not sure I understand how Jonah Shacknai would be responsible for Ernst and Young's accounting. Ernst and Young is a different company than Medicis - hired to do Medicis' accounting. It is THEIR job to know accounting practices...not Medicis'.

    Ernst and Young is the company that was fined, not Medicis.

    From the article:

    "Medicis said in a statement that it immediately corrected accounting errors related to the past audits; restated its financial statements; and that it “cooperated fully with the PCAOB in its investigation of E&Y.”

    The PCAOB said Ernst & Young failed to properly evaluate a material part of Medicis’ statements — its reserve for sales returns. Medicis estimated returns and reserved mostly for the cost of replacing products instead of for gross sales price.

    Ernst & Young personnel doing an internal quality review of the 2005 audit found that Medicis’ reserve method conflicted with Generally Accepted Accounting Principles, the prevailing U.S. standards for accounting, the PCAOB said.

    However, the Ernst & Young reviewers accepted another flawed accounting rationale for justifying the reserve method used by Medicis, the PCAOB said.

    Ernst & Young also faces a lawsuit by the New York Attorney General over audits of failed investment bank Lehman Brothers."

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    Ernst & Young work FOR Medicis...

    If you want to keep them as your client you DO what THEY WANT YOU TO DO...

    "Ernst & Young personnel doing an internal quality review of the 2005 audit found that Medicis’ reserve method conflicted with Generally Accepted Accounting Principles, the prevailing U.S. standards for accounting, the PCAOB said.

    However, the Ernst & Young reviewers accepted another flawed accounting rationale for justifying the reserve method used by Medicis, the PCAOB said.

    The way I see it.... Ernst & Young accepted several flawed accounting rationals used by Medicis.... so in other words... it was Medicis who dictated how things were to be done and Ernst & Young went along with it.... they had an ethical obligation to stand up to Medicis and say no but they failed to do so and that is why they were fined...and Medicis had an ethical obligation to their investors and were forced to pay back the millions of dollars because of their unethical accounting practice.

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  25. #14
    Quote Originally Posted by Mrs. Holmes View Post
    Ernst & Young work FOR Medicis...

    If you want to keep them as your client you DO what THEY WANT YOU TO DO...

    "Ernst & Young personnel doing an internal quality review of the 2005 audit found that Medicis’ reserve method conflicted with Generally Accepted Accounting Principles, the prevailing U.S. standards for accounting, the PCAOB said.

    However, the Ernst & Young reviewers accepted another flawed accounting rationale for justifying the reserve method used by Medicis, the PCAOB said.

    The way I see it.... Ernst & Young accepted several flawed accounting rationals used by Medicis.... so in other words... it was Medicis who dictated how things were to be done and Ernst & Young went along with it.... they had an ethical obligation to stand up to Medicis and say no but they failed to do so and that is why they were fined...and Medicis had an ethical obligation to their investors and were forced to pay back the millions of dollars because of their unethical accounting practice.

    Tax accounting companies are bound by law by certain standards. THEY are responsible for making sure everything is correct before it is submitted, not the company that hires them. Its the same thing with H & R Block. THEY are responsible for knowing the tax laws when you hire them to do your taxes.

    Do you have any links that show Medicis was involved with suggesting or bribing Ernst & Young employees to turn in the accounting "as is", or is that just your opinion?

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    Quote Originally Posted by CuriousGeorgia View Post
    Tax accounting companies are bound by law by certain standards. THEY are responsible for making sure everything is correct before it is submitted, not the company that hires them. Its the same thing with H & R Block. THEY are responsible for knowing the tax laws when you hire them to do your taxes.

    Do you have any links that show Medicis was involved with suggesting or bribing Ernst & Young employees to turn in the accounting "as is", or is that just your opinion?
    I agree they are bound by certain standards, but I know I sign something every year that says I agree they are not responsible if what is filed is incorrect. And I know from experience, having paid thousands of dollars because of an incorrect filing.
    Clear your mind must be, if you are to discover the real villains behind this plot. Opinion only, my posts are.

  28. #16
    Quote Originally Posted by Yoda View Post
    I agree they are bound by certain standards, but I know I sign something every year that says I agree they are not responsible if what is filed is incorrect. And I know from experience, having paid thousands of dollars because of an incorrect filing.
    They offer to "take responsibility" but for an extra fee, of course. I always pay it.

    Ernst & Young received the fine. Not Medicis.

  29. #17

    Medicis pays fee in settlement

    Quote Originally Posted by CuriousGeorgia View Post
    They offer to "take responsibility" but for an extra fee, of course. I always pay it.

    Ernst & Young received the fine. Not Medicis.
    CuriousGeorgia:

    BBM. According to this settlement document, and perhaps it is yet another lawsuit than the one you are referencing, Medicis did, indeed, pay out funds in addition to the accounting firm.

    "According to the terms of the settlement, Medicis will pay $11 million and Ernst & Young will pay $7 million to the Class."


    http://www.pomerantzlaw.com/~pomlaw8...al-corporation
    All of my posts are simply thought-starters and are not meant to be implications in any way, shape or form.

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  31. #18

    Dept of Justice on Medicis False Claims Settlement

    This is an older Department of Justice Settlement Announcement on the false claims made by Medicis promoting drugs for use not approved by the FDA.

    These fines of $9.8 million to settle the allegations were paid by Medicis (or their insurer on their behalf).

    http://www.justice.gov/opa/pr/2007/May/07_civ_336.html
    All of my posts are simply thought-starters and are not meant to be implications in any way, shape or form.

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  33. #19
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    Quote Originally Posted by CuriousGeorgia View Post
    They offer to "take responsibility" but for an extra fee, of course. I always pay it.

    Ernst & Young received the fine. Not Medicis.
    I did not know this. I'll be looking into that. Thanks
    Clear your mind must be, if you are to discover the real villains behind this plot. Opinion only, my posts are.

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    Quote Originally Posted by justice be served View Post
    This is an older Department of Justice Settlement Announcement on the false claims made by Medicis promoting drugs for use not approved by the FDA.

    These fines of $9.8 million to settle the allegations were paid by Medicis (or their insurer on their behalf).

    http://www.justice.gov/opa/pr/2007/May/07_civ_336.html
    FDA fines like this are not all that unusual, GSK just got hit with a $3 billion dollar fine.

    That said, in my experience and IMO, people at JS's level in business are often egotistical and they have to play dirty to stay at the top. They often believe they are above the law and their actions reflect that as well. I've worked with a couple CEOs and VPs that I swear fit the definition of a sociopath. They are tyrants in and outside of the work place.

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  36. #21
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    Last spring, Medicis Pharmaceutical settled a lawsuit by paying $18 million in damages to both Ernst & Young and Medicis stockholders. The reason they had to pay damages to E&Y was because they made changes to their accounting for several years that inflated the value of their company & its stock.

    http://www.pomerantzlaw.com/sites/de...c/00023111.pdf

    E&Y is being fined now because they were supposed to have caught and reported Medicis' accounting shenanigans. So, the misrepresentation of Medicis' value originated with Medicis.

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    Spreckels mansion owner described as go-getter

    Informative article on Jonah and Medicis-

    Snip- And the 54-year-old CEO has been seen by many as a whip-smart and relentless promoter — so relentless that he reportedly calls about 1,500 dermatology customers each year on their birthdays.

    ...“Jonah is very much the blood that runs through Medicis,” said Gary Nachman, a Wall Street analyst with the Susquehanna International Group. “They are a very meaningful player in the dermatology market.”

    ...Many locals were perturbed by Shacknai’s seeming eagerness to challenge rules he had agreed to. “I thought he was as arrogant as hell,” said Jeff Alison, a neighbor who attended City Hall meetings on the proposed renovations. “It was his way or the highway.”

    ...According to The Arizona Republic, Shacknai ranked ninth last year among the top 10 highest-paid CEOs and executives in the state. He earned a reported $6.4 million, the newspaper reported.

    ...Shacknai and his company have been the target of several lawsuits over finances, including a class-action lawsuit filed by investors who claim that Medicis inflated stock prices between 2003 and 2008, according to federal court records. The case is making its way through court in Arizona.

    http://www.utsandiego.com/news/2011/...page=2#article

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    That's an interesting article, very informative. Kind of shocking to hear JS's first wife say that, on their honeymoon, he suggested the marriage was a mistake.

    JS has worked very hard for many years to make his business a success. That's probably the reason why I've not considered him a party to anything that would harm MS or RZ. He's too smart to risk his corporation and personal reputation.

    I do, however, see him as someone who would go to great lengths to cover up scandal, particularly if someone else he knew was involved in hurting MS or RZ.

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  42. #24
    Quote Originally Posted by Betty P View Post
    That's an interesting article, very informative. Kind of shocking to hear JS's first wife say that, on their honeymoon, he suggested the marriage was a mistake.

    JS has worked very hard for many years to make his business a success. That's probably the reason why I've not considered him a party to anything that would harm MS or RZ. He's too smart to risk his corporation and personal reputation.

    I do, however, see him as someone who would go to great lengths to cover up scandal, particularly if someone else he knew was involved in hurting MS or RZ.
    Or someone that would go to great lengths to cover up scandal, if Rebecca had killed herself and there was quite a bit of information about her/their "unconventional" love life in the files, IMO.

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  44. #25

    Medicis acquired

    http://www.businessweek.com/news/201...-dot-6-billion

    Valeant is buying Medicis for $2.6 billion. Now that the long rumored deal is done, perhaps JS's position on Rebecca's death will be less surreptitious?
    All of my posts are simply thought-starters and are not meant to be implications in any way, shape or form.

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