[Editor's Note: This letter is in response to an article about Roy Abramowitz's decision to withdraw his candidancy for a seat on the New Canaan Town Council.]
The malicious unfounded slanderous and libelous attack on my professionalism, character and denial of my right of “due process” is addressed here-in.
Firstly Mr. Farrell retired from the practice of Public Accountancy well before the passage of Sarbanes Oxley and the formation of the PCAOB in January 2003. He never practiced pursuant to the rules and regulations of the PCAOB, never registered with the PCAOB and never held membership in the PCAOB. He is no expert.
Why would Mr Farrell commit libel and slander against me? Well one clear fact is that he is a staunch supporter of Mr Jeb Walker and the Town Council members that support Mr Walker’s prior behavior. I have been told by members in the community that Mr Farrell adamantly supported and spoke in favor of the actions of Mr. Walker in “Pension-gate”, the Lakeview Avenue Bridge debacle”, the wasting of $275,000 on “Walkerville” etc, etc. My position on these matters are totally opposite to those of Mr Farrell and his friend Jeb Walker. I ran against the mandate of the 7/8ths as part of RAW in the last Republican Town Council caucus. During that prior election process Mr. Walker pulled the same shenanigan sending a slanderous and libelous letter, on Town stationary, to members of the Town Council, Town administrators and the voting public. The Town Attorney subsequently sent a letter of apology to me, proclaiming that none of Jeb Walker’s claims were true. A clear violation of Connecticut State Election Law. During the last Republican Town Committee caucus an officer of the RTC and a “Republican” female member of the Town Council fabricated and spread a malicious and false story about my child in the auditorium while the voting was taking place. These are the same elected officials who ask why “civility” has decreased in New Canaan.
Another issue is why did Mr. Farrell wait until January 10, 2013, the morning of the Town Council vote, 29 days after my “Curriculum Vitae” appeared in the New Canaan Advertiser, to send his letter to Town Council Chairman DeWeale? Chairman DeWeale told me on the night of the Town Council vote that Mr. Farrell had verbally approached him and demanded that his accusations be passed to the members of the Town Council. Chairman DeWeale told Mr Farrell to put his comments in writing. Despite his comments made last week it is evident Chairman DeWeale had no intention to pass a copy of Mr Farrell’s memorandum to me or question the truthfulness of any of Mr Farrell’s accusations. Instead he sent a copy, the morning of the election, to all Town Council members, the First Selectman and Town Administrator. However Chairman DeWeale sent no copy to me, nor did he contact me as to the validity of the accusations. He passed along the letter without verifying if there was any truth to Mr. Farrell’s damaging accusations. Only after Chairman DeWeale learned that Town Council member Roger Williams sent a copy of the letter to me did Chairman DeWeale ask that a copy be sent to me, at 3:30 PM, three hours before the Town Council vote. Before the opening statements of the candidates I asked if I could address the issues in the letter. The Chairman denied my request, denying me my right of “Due Process” and assuring the consideration of untrue facts in the election process that night. I question why Chairman DeWeale participated in this unfounded vicious attack on my character and professionalism.? I had no choice but to “withdraw my candidacy”. My conclusion is that the Chairman hoped that I would never know of Mr. Farrell’s letter, otherwise why did he not give me the opportunity to address the issues.
Mr. Farrell’s allegations are blatantly false.
- My application for registration with the Public Company Accounting Oversight Board (PCAOB) was approved on July 28, 2009. I was required to join the PCAOB as were all CPA’s auditing any “Broker-Dealer”, whether a carrying or non-carrying Broker-Dealer. We were required to become a PCAOB member-firm before the end of 2009. My PCAOB registration number is 3609. I have sent many e-mails to the PCAOB and attended 16 hours of conferences each year with the PCAOB. The PCAOB has never questioned the nomenclature “member” which is defined as: “a person belonging to some association, society, community, party or etc. For example I am a “member” of the Republican Party but I am not a paid officer of the party. I never claimed or inferred that I was a member of the Board of Governors of the PCAOB, employed by the federal government and working and living in Washington DC. Mr Farrell’s allegation is preposterous.
- Mr Farrell’s allegation that the Broker-Dealers” I audit are” non-public” is irrelevant. Broker-Dealers are classified as “carrying” or “non-carrying”. That is whether they maintain their customer’s accounts or have a third party clearing firm do so. A decision that effects their “required firm capital”. The same audit procedures, generally accepted accounting principles and reporting requirements apply to both carrying and non-carrying Broker-Dealers. I never contended that I audited an issuer. Issuers are publically traded companies of which 98% are audited by the “Big Four” Accounting firms. Mr. Farrell’s issue with Issuer and “Non-Issuer” is unfounded and not pertinent. Other than firms like Goldman Sachs, Merrill Lynch, Jefferies etc the majority of “Broker-Dealers” are non-public companies (non-issuers).
- All my audits and audit reports were, and are currently done pursuant to SEC Rule 17A-5e(3) and CFTC Regulation 1.10(g). The report(s) contain an audited computation of net capital pursuant to SEC Rule 15c3-1 and CFTC Regulation 1.16, an Independent auditor’s report on internal accounting control required by SEC Rule 17a-5(g)(1), and Independent accountant’s report on applying agreed-upon procedures to an entity’s SIPC assessment reconciliation. Five copies of each Broker-Dealer Audit Report must be filed with the SEC, NYSE, FINRA and every state the BD is registered in.
- Mr Farrell contends I am a one person firm. All though I am not, what is the relevance? In fact I have an “Enrolled IRS Agent” working in my New Canaan Office and a Joint Venture with a mid-sized NYC firm. Do I need the permission and approval of Mr. Farrell and the Town Council on how to structure my firm?
- Mr Farrell contends that I am not “Quality” or “Peer-Reviewed”. It is evident that Mr. Farrell does not understand “Quality” or “Peer-Review”. The PCAOB randomly inspects, there is no mandatory requirement to inspect any firm. The decision to “inspect” is solely that of the PCAOB and not required by the American Institute of Certified Public Accountants or any State CPA Society. Quality and\or Peer Review is promulgated and required of all audit firms by the American Institute of Certified Public Accountants and the State Society of registration, in my case the New York State Society of Certified Public Accountants on a tri-annual basis. My Firm number is 1052603 and my review number is 339530. The last two tri-annual reviews were completed and accepted, with no exceptions, on January 11, 2010 and January 2013. The PCAOB does not perform “Quality” or “Peer Reviews” as Mr. Farrell claims.
- I attach verification of my latest tri-annual “Peer Review”, dated December 20, 2012, in an attached PDF.
- I have reciprocity to practice as a Certified Public Accountant in the 50 contiguous states. My state of licensure is New York State. I have had a “Firm Permit to Practice Public Accounting in Connecticut” since 2010. My 2013 registration was submitted on January 5, 2013. My Firm number is 4851. There is no cost for the Connecticut registration.
- What is the relevancy of Mr Farrell pointing out what I did not reference as experience?
Thank you for your consideration of this matter.
Roy A Abramowitz