Accell Audit & Compliance, P.A. Permanently Revoked by the PCAOB
On March 11, 2025, the Public Company Accounting Oversight Board (“PCAOB”) issued an Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions, permanently revoking the registration of Accell Audit & Compliance, P.A. (“Accell”).
The PCAOB is a nonprofit corporation created by the Sarbanes–Oxley Act of 2002 that regulates auditors of publicly traded companies, aiming to protect investors and promote the public interest by ensuring the accuracy and independence of audit reports. The PCAOB periodically reviews registered public accounting firms and issues Inspection Reports.
Accell was incorporated in Florida in 2009 and is headquartered in Tampa. The firm is licensed to practice public accounting by the Florida Board of Accountancy (license number AD66617), among other state boards. During the period covered by the Order, Accell annually served as the principal auditor for 28 issuer clients.
On September 24, 2024, the PCAOB issued an Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions against Accell, In the Matter of Accell Audit and Compliance, P.A., PCAOB Release No. 105-2024-037 (“September Order”), for Accell’s failure to make certain required communications to the audit committees of two issuer clients as required by PCAOB Rule 5000. Pursuant to the September Order, the PCAOB censured Accell, ordered Accell to pay a civil money penalty of $40,000 within ten days of entry of the September Order, and ordered Accell to undertake certain remedial actions regarding Accell’s policies and procedures and to provide a certification that Accell has done so within 120 days of entry of the September Order.
Accell failed to pay the civil money penalty imposed upon it and failed to provide a certification that it had completed the required remedial measures, therefore, failing to comply with the PCAOB’s September Order in violation of PCAOB Rule 5000, leading to the PCAOB determined it appropriate to permanently revoke the registration of Accell Audit & Compliance, P.A. to protect the interests of investors and the public.
The PCAOB action coincided with a separate action by the Securities and Exchange Commission (the “SEC“). On September 27, 2024, the SEC filed a Complaint against Ignite International Brands, Ltd. and Accell (Case Number 1:24-cv-07331-VM). The SEC’s complaint alleged that from late 2020 to 2021, Ignite engaged in a scheme to report approximately $5 million in non-existent sales of disposable vape pens as part of the company’s fourth quarter 2020 results. According to the complaint, Ignite issued a series of false invoices to one of its customers for the vape pens in November and December 2020, despite the fact that the customer had never ordered the product. The complaint further stated that Ignite relayed a false story about the bogus purchase of the disposable vape pens to Ignite’s auditor, Accell Audit & Compliance, PA, and its engagement partner, Christopher Hiestand, and, in April 2021, when Ignite publicly released its 2020 audited financial statements, they included the false sales figures.
The SEC further alleged that, despite numerous red flags concerning the purported sale of the disposable vape pens, and despite knowing or being reckless in not knowing that the purported sales never actually occurred, Accell and Hiestand issued a report opining that the 2020 audited financial statements fairly presented Ignite’s financial position as of year-end.
A final judgment was entered in the SEC case on December 20, 2024, in which each of Christopher Hiestand and Accell was permanently enjoined from future violations of Section 10(b) of the Exchange Act and Rule 10b-5. Accell was ordered to pay a $75,000 civil penalty, and Hiestand was ordered to pay a $50,000 civil penalty.
On December 27, 2024, the SEC suspended Christopher Hiestand of Accell from appearing or practicing before the SEC as an accountant, and on December 31, 2024, the SEC entered an Accounting and Auditing Enforcement Action against Accell, suspending the firm from appearing or practicing before the SEC as an accountant.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes. For more information about this securities law blog post or to speak with a Securities Attorney, please contact Brenda Hamilton at 200 E Palmetto Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at [email protected].
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Brenda Hamilton, Securities Attorney
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