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SEC: Former CPA Ignored Order

David Rivard, former CPAThe Securities and Exchange Commission is seeking force a former CPA, who it claims ignored its barring him from practice, to obey its orders. The agency said the former accountant, David Rivard, involved in accounting fraud at the former Computer Associates, failed to pay a civil money judgment and also began working as a financial consultant who prepared financial statements, despite the SEC’s action and the loss of his CPA license.

The SEC said Rivard hid income and had paid none of the $160,000 he was ordered to make under a 2004 judgment. The agency wants its bar enforced and to have Rivard held in contempt for his failure to pay the civil money judgment.

Rivard, who surrendered his New York CPA license in March 2008, became a financial consultant to Verint Systems in 2009. He helped the company restate several years of financial statements and engaged in what the SEC described “a wide range of acts related to those financial statements.”

The former CPA drew the SEC action because as head of Sales Accounting at Computer Associates he was held to be involved in the $1.4 billion securities and accounting fraud.  Rivard, who was with the company from August 1998 through September 2003 was VP of finance-sales accounting during his last three years there. 

Rivard, the company's revenue recognition expert, was determined to have allowed Computer Associates to record revenue prematurely from software contracts, backdated his signature on contracts, and lied to outside counsel and the company's auditor, and obstructed the company's internal investigation and the Commission's investigation.

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