ADMINISTRATIVE PROCEEDING
File No. 3-21192; File No. 3-21193

September 30, 2022 - The Securities and Exchange Commission today announced settled charges against BrookWeiner LLC, an audit firm based in Chicago, Berkower LLC, an audit firm based in New Jersey, and audit partners James E. Schmidt, CPA, Sheldon Weiner, CPA, Michael G. Mullen, CPA, and Maurice Berkower, CPA for their improper professional conduct in connection with audits of an open-end mutual fund that was used to pursue a fraudulent scheme.

According to the SEC's orders, BrookWeiner's 2017 audit and Berkower's 2018 audit of the State Funds - Enhanced Ultra Short Duration Mutual Fund failed to comply with certain auditing standards. The order against BrookWeiner finds that BrookWeiner and Schmidt failed to meet applicable auditing standards related to due professional care, training and proficiency, audit planning, audit documentation, audit evidence, related-party transactions, and supervision and review, and that Weiner, the engagement quality review partner, failed to inquire about a number of key documents and issues regarding the transactions. The order related to Berkower finds that Berkower and Mullen failed to meet applicable auditing standards related to audit planning, audit evidence, related-party transactions, and supervision and review, and that Maurice Berkower, the engagement quality review partner, failed to review key documents and issues. The orders also find that both firms failed to adhere to the PCAOB's quality control standards.

Without admitting or denying the Commission's findings, the respondents consented to the entry of orders finding that they engaged in improper professional conduct pursuant to Section 4C(a)(2) of the Exchange Act and Rule 102(e)(1)(ii) of the Commission's Rules of Practice. Schmidt, Weiner, Mullen, and Maurice Berkower consented to the entry of an order that denies them the privilege of appearing or practicing before the Commission as accountants, with a right to request reinstatement after two years for Schmidt and Mullen and one year for Weiner and Maurice Berkower. BrookWeiner consented to the entry of an order that denies it the privilege of appearing or practicing before the Commission as an accountant and agreed to provide continuing cooperation. Berkower consented to a censure and to certain undertakings to improve the firm's audit procedures and oversight, and agreed to provide continuing cooperation.

The SEC's investigation was conducted by Alexandra M. Arango, Brook Jackling DeVeas, Gregory C. Padgett, Andrew M. Shirley, and David F. Miller, with assistance from Paul Kisslinger, and supervised by Carolyn M. Welshhans, David A. Becker, Virginia M. Rosado Desilets, and Jim Carlson.