SEC Fines Friedman $1.5 Million for ‘Serial’ Audit Violations

Friedman LLP has agreed to pay nearly $1.6 million to settle SEC charges that it failed to scrutinize millions in related-party transactions for two of its audit clients.

Friedman, which merged into Marcum LLP Sept. 6, knew of some of the entities related to its former client iFresh Inc. but didn’t respond to red flags that suggested the Asian grocer and wholesaler had not disclosed additional related parties and transactions, according to a settlement order the Securities and Exchange Commission released Friday.

• The failure to disclose those transactions to investors caused material ...