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State board approves two settlement agreements; Markham LLP to pay $125,000
Summary
The board accepted settlement agreements for two investigations: Margaret P. Douglas agreed to a $1,000 penalty for operating a Connecticut CPA practice without a firm permit; Markham LLP consented to terms tied to SEC and PCAOB orders and agreed to pay $125,000 and comply with undertakings.
The Connecticut State Board of Accountancy accepted two settlement agreements for separate investigations during its meeting.
In case 2024‑47, DCP staff said Margaret Pearl Douglas operated a Connecticut office under Cannaville Consulting LLC without obtaining a firm permit, in violation of state statutes governing use of the CPA title and firm permits. Kat, a DCP staff member, said Douglas had been licensed in Connecticut in November 2016, formed Cannaville Consulting LLC in January 2017 (dissolved in December 2024), later moved to New York and formed Pearl Douglas, CPA Services, PC. Staff said Douglas cooperated, expressed remorse and told investigators she did not know the firm-permit requirement. The settlement requires Douglas to pay a $1,000 penalty. The board voted to approve the settlement.
In a separate matter (case 2023‑36), the board approved a settlement with Markham LLP stemming from lengthy SEC and PCAOB orders that found quality-control failures in the firm’s audits of special-purpose acquisition companies (SPACs) beginning in 2020. Kat told the board the firm neither admitted nor denied the findings in the federal orders but consented to the orders’ terms. DCP staff said the firm demonstrated Connecticut nexus in audit work and has implemented extensive remedial measures since September 2022.
Under the settlement the board approved, Markham will comply with the undertakings in the SEC and PCAOB orders, disseminate a copy of the settlement to current and identified former personnel who are licensed in Connecticut or worked in Connecticut offices (some personnel transferred to CBIZ after a merger), and pay a $125,000 fine. Kat noted the settlement does not add a separate CPE requirement because Markham already required relevant audit staff to complete SPAC-related CPE and provided completion records.
Tim, the board adviser on the case, said he was comfortable the settlement addressed root causes and remedial actions. One board member declared a conflict and abstained from the Markham vote. The board approved both settlements.
