U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22911 / January 27, 2014
Accounting and Auditing Enforcement Release No. 3531 / January 27, 2014
Securities and Exchange Commission v. Deloitte Touche Tohmatsu CPA Ltd., Civil Action No. 1:11-MC-00512 (D.D.C. filed September 8, 2011)
SEC, Joined by Deloitte China, Files a Motion to Dismiss Without Prejudice the Subpoena Enforcement Action
The Securities and Exchange Commission today filed a joint motion with Deloitte Touche Tohmatsu CPA Ltd. (“DTTC”) to dismiss without prejudice the subpoena enforcement action that the SEC filed against DTTC in September 2011. Dismissal of the proceeding, as proposed by the parties, is subject to the approval of the district court.
The SEC initiated the subpoena enforcement action to compel DTTC to produce audit workpapers and other documents responsive to an administrative subpoena issued in connection with the SEC’s investigation into possible fraud by DTTC’s former audit client, China-based Longtop Financial Technologies Limited, a foreign private issuer whose securities were registered with the Commission and traded on U.S. markets. DTTC had argued that it was prohibited under Chinese law from producing the requested documents, which are located in China, to the SEC.
The SEC recently received a substantial volume of documents called for by its subpoena, including DTTC audit workpapers and certain other documents related to Longtop. The production was made by the China Securities Regulatory Commission (“CSRC”) in response to the SEC’s request for assistance in August 2012. The CSRC produced the documents to the SEC after obtaining them from DTTC.