How Else Is An Auditor Supposed To Get A Good Look At A Casino’s Books Than By Borrowing $478,000 To Gamble And Hiding It From Everyone?

Deloitte’s James T. Adams was just trying to do a deep dive into the business, to really get a good feel for the nuts and bolts, the ins and outs, and the what have yous, all of which the Securities and Exchange Commission apparently frowns upon.

An SEC order finds that certified public accountant James T. Adams repeatedly accepted tens of thousands of dollars in casino markers while he was the advisory partner on subsidiary Deloitte & Touche’s audit of a casino gaming corporation. A marker is an instrument utilized by a casino customer to receive gaming chips drawn against the customer’s line of credit at the casino. Adams opened a line of credit with a casino run by the gaming corporation client and used the casino markers to draw on that line of credit. Adams concealed his casino markers from Deloitte & Touche and lied to another partner when asked if he had casino markers from audit clients of the firm. Adams, who lives in California, agreed to settle the SEC’s charges by being suspended for at least two years from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC…

According to the SEC’s order instituting a settled administrative proceeding, Adams drew $85,000 worth of markers in July 2009 that remained outstanding for 43 days. In September, he drew $3,000 in markers that were outstanding for 13 days and $70,000 in markers that were outstanding for 27 days. In October, he drew $110,000 in markers that were outstanding for 38 days. In December, he drew $100,000 in markers that were outstanding for seven days, and later drew $110,000 in markers that remained outstanding when he retired from the firm in May 2010.

(Clearly the $3k in markers is the best one, which Adams rationalized by telling himself “Oooh, I could just get a little taste this time. I won’t get carried away,” and then “Fuck it, who am I kidding, I need to withdraw another $180k between September and October.”)

SEC Charges Former Deloitte Chief Risk Officer for Violations of Auditor Independence Rules [SEC, via Matt]

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6 Responses to “How Else Is An Auditor Supposed To Get A Good Look At A Casino’s Books Than By Borrowing $478,000 To Gamble And Hiding It From Everyone?”

  1. horn says:

    I dunno, borrowing $100k to pay craps or whatever and paying it back in a week is kinda impressive for a degenerate…

  2. runcibleman says:

    Look for the feature film starring Leonardo DiCaprio coming to theaters near you in 2015.

  3. Guest says:

    How old is this guy? Just asking as it says he retired in 2010. So his punishment for this is to be suspended from a job he's no longer doing. Must have had many a sleepless night thinking that punishment over before agreeing to it.

  4. Reader of SEC Orders says:

    He's 62. "Retired" after working there since 1974, the last of it (since 85) as their chief risk officer. Unless they stripped him of partner benefits when they threw him out in 2010, he won't be needing to work the fry machine at McDonalds to make ends meet.

    He was removed from the audit, and 'retired' shortly thereafter, which says to me that maybe D&T knew what was up.

  5. B Iteme says:

    Yeah, meanwhile the SEC staff doesn't even get docked pay for spending their days watching internet porn.