SEC Suspends Former Audit Partner and Senior Manager for Engaging in Improper Professional Conduct

ADMINISTRATIVE PROCEEDING
File No. 3- 20075

September 25, 2020 - The Securities and Exchange Commission today filed settled charges against Texas-licensed accountants James L. Thompson and Lam D. Ha, who were the engagement partner and senior manager, respectively, on an audit of Santa Fe Gold Corporation, for engaging in improper professional conduct.

According to the SEC's orders, Thompson and Ha audited Santa Fe Gold's financial statements for fiscal year 2017, a period during which Santa Fe Gold's former CEO, Thomas H. Laws, misappropriated approximately $1 million of investor funds from the company. According to the orders, during the audit, Thompson and Ha each encountered numerous red flags concerning Laws' misconduct, including transfers of material amounts of Santa Fe Gold funds to Laws' personal bank account, indicating that additional audit steps were required. The order finds that Thompson and Ha failed to exercise due professional care, maintain professional skepticism, or obtain sufficient appropriate audit evidence supporting the unusual transactions as required by Public Company Accounting Oversight Board standards.

The SEC's orders find that Thompson and Ha each engaged in improper professional conduct pursuant to Section 4C of the Exchange Act and Rule 102(e)(1)(ii) of the Commission's Rules of Practice. Without admitting or denying the SEC's findings, Thompson and Ha each agreed to be suspended from appearing or practicing before the SEC as accountants, which includes not participating in the financial reporting or audits of public companies. The SEC's orders permit Thompson and Ha to apply for reinstatement after two years.

The SEC's investigation was conducted by Michael Cates and Donna Walker and was supervised by Ian S. Karpel and Jason Burt.