California based CPA was suspended from practicing before SEC on account of ADMI fraud case. Bishop is a sole practitioner CPA who conducted audits of the financial statements for Asthma Disease Management Inc [ADMI] for the fiscal year ended May 31, 1993 through the fiscal year ended May 31, 1999.
In ADMI fraud, former president, CEO, and chairman of the board, alongwith two of its directors, engaged in a fraudulent marketing scheme in which they issued false press releases, fraudulently inflated ADMI’s assets and disseminated misleading information in Commission filings by omitting the auditor’s going concern opinion and by failing to disclose significant stock-based executive compensation and related party transactions. The complaint further alleges that Bishop aided and abetted the fraud by improperly booking a material asset on ADMI’s balancesheet, by failing to review ADMI’s Forms 10-K before or after they were filed with the Commission, and by failing to conduct her audit of ADMI’s financial statements in accordance with generally accepted auditing standards.
ADMI Fraud case
- In February and March 2000, ADMI, Young and Anderson issued false and misleading press releases, claiming ADMI had obtained contracts with three HMOs to provide physician training for asthma treatment services when no such contracts existed.
- Anderson personally benefited from his role in the dissemination of the false press releases by selling 93,000 shares of ADMI stock for $59,973 when the market price was artificially inflated by the false information in the press releases.
- ADMI and Young fraudulently inflated its assets by at least 70% in Commission filings. In its Forms 10-K for the fiscal years ended May 31, 1998 and May 31,