Regulation & Compliance
Four enforcement targets for a smaller IRS
After cutting nearly 28,000 staff, the IRS has limited enforcement resources. According to analysis by former IRS executive Kathy Enstrom at the Illinois CPA Society's 2026 Summit, the agency will focus on cracking down on nonprofit fraud, employment tax evasion, cross-border tax abuses (such as Puerto Rico's Act 60), and cryptocurrency-related crimes.
Securities class action suits ramped up in H1 2026
Securities class action filings and settlements increased notably in the first half of 2026, according to Gallagher's mid-year D&O report. AI-related allegations appeared in 13% of cases, while foreign-headquartered companies faced the largest share of suits. Settlement totals more than doubled year over year, potentially encouraging more litigation.
Tricolor ex-CFO among trio of executives named in SEC suit
The U.S. Securities and Exchange Commission announced fraud charges against former Tricolor Holdings CEO Daniel Chu, ex-CFO Jerome Kollar, and former Senior Director of Finance Ameryn Seibold, alleging they misled investors about the company's financial health and collateral pools. The charges follow a federal criminal case and the company's September 2025 bankruptcy.
Florida hedge fund’s ex-CFO pleads guilty in $3M embezzlement case
Theodore Woo, former CFO of a Florida hedge fund, pleaded guilty to securities fraud for embezzling over $3 million. He faces sentencing in mid-November.
HCA Healthcare’s former CFO on the role of partnerships in health
In a wide-ranging interview, Bill Rutherford, former CFO of HCA Healthcare, shares insights on leadership during COVID-19, the growing need for health systems to embrace external partnerships, and why healthcare costs are unlikely to fall below the consumer price index anytime soon.
The double-edged sword of deregulation
The U.S. Supreme Court's ruling in Trump v. Slaughter grants the president the power to dismiss heads of independent agencies at will, potentially leading to frequent regulatory policy shifts and increasing compliance risks and costs for businesses. Legal experts recommend that companies enhance compliance efforts and adopt proactive monitoring.
Kubient’s ex-CFO agrees to $30K civil fine
The U.S. Securities and Exchange Commission (SEC) disclosed on June 23 that Joshua Weiss, former CFO of ad fraud detection company Kubient, has agreed to pay a $30,000 civil penalty and accept a three-year ban from serving as an officer or director of a public company over charges of misleading investors. Weiss consented to the judgment on July 8 without admitting to the allegations. Previously, in September 2024, the SEC filed a fraud lawsuit against Weiss, audit committee chair Grainne Coen, and former CEO Paul Roberts, alleging they inflated revenue and misled auditors.
Loretto Hospital’s ex-CFO is denied request to dismiss fraud charges
Judge Sharon Johnson Coleman of the U.S. District Court for the Northern District of Illinois recently ruled to deny the motion by Anosh Ahmed, former CFO and COO of Loreto Hospital in Chicago, to dismiss fraud charges. Ahmed is accused of participating in submitting fraudulent COVID-19 test claims exceeding $800 million and is currently detained in Belgrade, Serbia. The judge acknowledged misconduct by the government but emphasized that Ahmed's refusal to return to the U.S. for trial precludes him from seeking judicial relief in absentia.
Former FEMA CFO Mary Comans wins ruling, awaits decision on job
Judge Michael Nachmanoff of the U.S. District Court for the Eastern District of Virginia ruled that the Trump administration violated the law last year when it fired former Federal Emergency Management Agency (FEMA) CFO Mary Comans by failing to provide the procedural protections afforded to career federal employees. The court did not directly reinstate Comans but ruled she is entitled to a clarification hearing and ordered both parties to submit a joint proposal within 14 days. The ruling could have broad implications for other federal employees fired under presidential power theories.
New filings widen Uncle Nearest case tied to former CFO
The legal dispute surrounding Uncle Nearest's former CFO Michael Senzaki entered a new phase this month. Court documents filed on July 10 show that receiver Phillip Young Jr. fired the founder and accused the primary lender Farm Credit Mid-America of failing to detect warning signs related to Senzaki's alleged misconduct. Documents filed days earlier also revealed subpoenas from federal agencies. The receiver reported that the company has signed a letter of intent to sell most of its operating assets and continues to incur losses.