Financial Investigations, Restatement and Accounting

John J. Carney, a former practicing CPA at a Big Four accounting firm, SEC Senior Counsel in the Division of Enforcement and Department of Justice (DOJ) Securities Fraud Chief, has unparalleled experience investigating and defending cases involving technical accounting issues, restatements and allegations of financial misconduct. As a prosecutor, he successfully served as the lead counsel in the Cendant accounting and restatement fraud trial securing a victory after a nine-month trial. As defense counsel, he constructed a “bottom up” accounting defense resulting in an unprecedented non-fraud resolution in the multi-year Diebold, Inc., SEC restatement matter. His expertise and knowledge of accounting issues have earned him recognition by the American Institute of Certified Public Accountants as certified in financial forensics, while his skill as a courtroom advocate has resulted in favorable verdicts and national recognition as the “go to” lawyer in high-stakes accounting cases. Mr. Carney has been nationally recognized as one of the best securities enforcement defense lawyers in the country, and he is a frequent lecturer on accounting, auditing and restatement issues and related trial strategy to both the private bar and government agencies, including the DOJ and SEC.

Jonathan R. Barr, a former Assistant U.S. Attorney, DOJ Fraud Section Trial Attorney and SEC Senior Counsel in the Division of Enforcement, is a seasoned advocate who brings more than two decades of experience to advise and defend clients facing government investigations into complex financial accounting matters. In private practice, Mr. Barr has successfully represented NYSE companies, General Counsels, Chief Financial Officers and a Chief Compliance Officer in complex government investigations. His recent engagements include the representation of a Chief Financial Officer and a General Counsel in SEC investigations initiated as a result of accounting restatements. Numerous rating organizations have recognized Mr. Barr’s skill in representing clients in government investigations, and the Securities Docket notably named Mr. Barr to its “Enforcement 40” list of the 40 top securities enforcement defense lawyers in the country.

Jimmy Fokas, a former SEC Senior Counsel in the Division of Enforcement, was a lead member of the team that investigated and commenced a civil prosecution against Symbol Technologies, Inc., and certain former executives, alleging widespread accounting irregularities. Mr. Fokas’s efforts resulted in Symbol restating its financial results related to revenue, expenses and net income for a four-year period, with adjustments of almost $500 million. Mr. Fokas also investigated and commenced civil actions involving offering fraud and fraudulent trading practices. In private practice, Mr. Fokas has conducted internal investigations and represented individuals and entities concerning accounting irregularities before the SEC and other government agencies. Mr. Fokas helps his clients navigate the complexities of government investigations by mastering complex fact patterns and crafting a strategy intended to deliver favorable outcomes while minimizing reputational and financial risks.

C. Shawn Cleveland is a former CPA who represents clients in high-stakes accounting and corporate crisis situations, with significant experience conducting internal investigations and defending investigations by government agencies including the DOJ and SEC. These matters have included alleged securities fraud, particularly accounting and disclosure fraud, government program fraud, the False Claims Act, the Anti-Kickback Statute, and the FCPA. Mr. Cleveland also regularly represents audit firms and auditors in addressing compliance with applicable auditing standards before the SEC. A trusted advisor, corporate boards and management frequently turn to Mr. Cleveland for counsel on governance and compliance issues in connection with investigations and litigation. He brings a valuable business-oriented approach to problems, based on his many years of experience advising companies as a lawyer and as a CPA in his prior career.

Collectively, the FIRA team has successfully represented accounting firms and individuals in accounting-related matters before the SEC, the Public Company Accounting Oversight Board (PCAOB), the DOJ and state regulatory offices. We conduct internal accounting-related investigations, which are timely, targeted, confidential and comprehensive and designed to avoid disrupting business operations and minimize reputational and financial risks. We also advise public company boards concerning their handling of accounting errors and irregularities.

Our corporate lawyers handle corporate governance, securities compliance and related matters on behalf of our clients. These governance issues include working alongside legal and compliance departments on behalf of management, audit committees, special committees and boards of directors to identify violations and recommend remedial actions, including facilitating any mandatory or voluntary self-disclosures to government agencies and developing corporate governance programs. Our FIRA team also regularly assists clients with compliance and disclosure requirements under securities laws and related regulations.

The FIRA team has been nationally recognized and is Chambers-ranked for white collar matters. Our members have been named to the Securities Docket “Enforcement 40,” a list of the 40 top securities enforcement defense lawyers in the country. FIRA team members regularly lecture and write on important accounting issues, including financial statement materiality, technical accounting applications and emerging disclosure issues.