Contact Howard

Howard Scheck is a StoneTurn Partner with three decades of experience advising clients concerning complex financial reporting matters.

Howard is a former SEC Chief Enforcement Accountant with extensive experience applying accounting and auditing standards in the context of the federal securities laws. He frequently serves as a consulting and testifying expert and specializes in assisting counsel with:

Defending clients who are subjects of SEC and DOJ enforcement inquiries.
Representing clients in class action lawsuits, purchase price disputes or arbitrations involving financial reporting issues.
Conducting independent audit or special committee investigations arising from government investigations and whistleblower complaints.
Defending auditors alleged to have violated auditing standards.
Assessing the design and operating effectiveness of internal controls and compliance programs.

For 15 years, Howard investigated and prosecuted financial reporting matters in the SEC’s Division of Enforcement serving as Chief Accountant for 3.5 years and Branch Chief, Senior Counsel, and Staff Attorney for 11.5 years. As Chief Accountant, Howard managed 100 accountants across the Division and worked closely with investigation teams, senior officers, the Office of Chief Accountant and the Division of Corporation Finance on accounting and auditing-related enforcement actions. As Branch Chief, Howard investigated and prosecuted a wide range of federal securities laws violations including accounting, FCPA, insider trading, market manipulation, and 40 Act matters. As a forensic accounting partner in the private sector for over 15 years, Howard has consistently provided expert advice and opinions and has conveyed complex and nuanced accounting interpretations to regulators, boards of directors and management.

Interviews

SEC Enforcement Trends

Howard Scheck, Partner with StoneTurn in Washington, DC, provides an overview of SEC Enforcement Trends, including the importance of data integrity, a heightened focus on investigations and enforcement actions, and an increased emphasis on disclosures. He explains how companies can benefit from conducting frequent risk assessments to prevent and detect issues before they arise.

Turn to Howard

Q: Can you give an example of StoneTurn’s lean and efficient approach?

StoneTurn’s lean and efficient approach makes it easy for counsel and clients to do business with us. At the outset, our swift conflict clearing process allows us to quickly begin working on engagements. Partners with significant experience lead each engagement, and we staff our teams with professionals who have the appropriate subject matter and industry expertise. We calibrate team size based upon the circumstances, and at all stages, work as effectively and efficiently as possible for the client.

Q: StoneTurn is known for being collaborative. Describe for us how the firm is able to work so seamlessly with clients and as colleagues.

StoneTurn is able to work so seamlessly with clients and colleagues because we operate as one cohesive team, always putting the client first. For instance, regardless of how a matter comes our way, we quickly determine which Partner would best serve the client in leading the engagement and which professionals have the most relevant expertise—and then staff it accordingly. Each team receives ongoing support from other Partners and professionals, as needed, to best meet clients’ needs. By making ourselves available to consult with each other, we benefit from our diverse experiences, avoid working in silos and are able to provide clients with our best collective thinking. This collaborative approach makes StoneTurn an enjoyable place to work and enables us to foster meaningful and ongoing relationships with our clients.

Q: Every day, StoneTurn professionals help clients untangle complex problems. Can you give us an example of a great client challenge you faced and how you successfully solved it?

Many of our clients are public companies being investigated for potential accounting fraud or FCPA violations. These matters typically involve assessing complex financial reporting issues involving compliance with relevant standards, materiality and internal controls. Whether the SEC or DOJ pursues an investigation, reduces charges or declines to prosecute depends on the quality of our work. My recent experience includes successfully convincing the SEC and DOJ to end their investigations (and decline to recommend charges) against a public company being investigated for improper revenue recognition. In another matter, we were instrumental in convincing the SEC to dismiss all allegations of fraud, leaving only a minor internal control violation (with no individuals charged and no penalties). In both cases, we assisted clients in navigating the government’s evolving theories of potential liability; continually explained and convinced regulators why our investigation approach and scope was reasonable; and ultimately, despite some remaining issues, why there was no scienter and no material misstatements or omissions. Critical to StoneTurn’s success, in addition to identifying and analyzing data, has been our ability effectively summarize our findings and communicate our views to clients and the government in a clear, concise and meaningful way.