ADMINISTRATIVE PROCEEDING
File No. 3-21831

January 18, 2024 – The Division of Enforcement of the Securities and Exchange Commission today announced that it has filed administrative and cease-and-desist proceedings against certified public accountant Edward F. Hackert, an engagement partner at Marcum LLP and resident of East Meadow, New York, for repeatedly violating PCAOB audit standards, including those related to supervision, audit documentation, and due professional care, in audits for which he was the lead engagement partner, over at least the last ten years.

According to the SEC’s Order, from 2012 through 2022, Hackert served as the engagement partner for at least 240 audits of public companies, including both operating companies and special purpose acquisition companies.  For at least 204 of those audit engagements (or approximately 85%), Hackert failed to supervise the work of the engagement team as shown by, among other things, his failure to review the work of the engagement team and to document his review by the report release date. Hackert also repeatedly failed to assemble complete and final audit documentation within 45 days of the report release date for 126 (or approximately 53%) of the audit engagements. These failures violated PCAOB auditing standards.  Further, in connection with the 2018 through 2020 audits of Ault Alliance Inc., where Hackert served as the engagement partner, Hackert violated additional PCAOB auditing standards, including failing to exercise due professional care.

The order charges Hackert with engaging in improper professional conduct within the meaning of Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e)(1)(ii) of the SEC's Rules of Practice and causing Marcum's violations of Rule 2-02(b)(1) of Regulation S-X. 

The SEC's investigation was conducted by Elizabeth Marshall Anderson, Christina McGill, and Michi Harthcock. The case was supervised by Tim England and Melissa Hodgman. The litigation will be conducted by Timothy Halloran and Michael Friedman, and supervised by David Nasse.