The SEC Enforcement Division investigates possible violations of securities laws; recommends SEC action when appropriate, either in a federal court or before an administrative law judge; and negotiates settlements. Litigation Releases, which are descriptions of SEC civil and selected criminal suits in the federal courts, are posted on the SEC website (www.sec.gov/litigation/litreleases.shtml). Find Litigation Release No. 23765, dated March 3, 2017. 

Required:

a. What is the nature of the complaint underlying LR No. 23765? 

b. How was the fraud underlying the complaint detected? 

c. The litigation release does not discuss the role of the auditor. Given the nature of the fraud, do you believe the auditor will be found liable if sued under the 1934 Securities Act?