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Clarification regarding charges against BDO over staffing firm’s audits

September 10, 2015

In clarification to the headline of an article that ran in yesterday’s Staffing Industry Daily News, national audit firm BDO USA, which faced charges from the US Securities and Exchange Commission, was not the auditor of General Employment Enterprises when the charges were announced yesterday. However, the facts alleged in the charges stem from BDO’s work when it was auditor for General Employment Enterprises in its fiscal years 2009 and 2010.

Also, several executives mentioned in the SEC’s announcement yesterday — including Stephen Pence, Ronald Heineman and Salvatore Zizza — are no longer with General Employment Enterprises, although their charges stem from actions taken while executives at the company.

In a statement, General Employment Enterprises said:

“General Employment was not a party to the SEC administrative proceeding against BDO nor was it notified by the agency in advance of [Wednesday’s] disclosure. The company has not received any notice from the SEC that it is a part of or named in any proceeding with the agency. The executives of General Employment and directors responsible for oversight and management during the fiscal years ended September 30, 2009 and 2010 that were referenced in the SEC's Order are no longer a part of GEE. The company had previously dismissed BDO as its auditor in 2012.”