“... those who lie in SEC investigations will face an SEC committed to working closely with the criminal authorities to ensure that they are held accountable.” - Robert Khuzami, Director of SEC’s Division of Enforcement.

Former audit partner at accounting and consulting firm BDO USA LLP,  Bryan Polozola of Richardson, TX, pleaded guilty to criminal charges for lying to SEC enforcement staff during investigative testimony pertaining to an investment adviser and hedge funds he managed.  According to criminal information filed in U.S. District Court for the District of Columbia, the SEC issued subpoenas last year to BDO and CPA . Polozola was called to testify because he had been responsible for auditing several hedge funds managed by an investment adviser that was under investigation by the SEC.  It didn't help Polozola's case knowing that BDO's audit of the adviser was a central issue in the SEC inquiry.  Accordingly, the SEC inquiry and investigators took testimony from Polozola to obtain information about his role in the audit process and to assess his credibility. Polozola had been the subject of a 2005 NASD proceeding alleging that he took $49,350 in funds from a former employer for his personal use. Polozola neither admitted nor denied NASD’s allegations in consenting to a bar from associating with any NASD firm. Details in Related Criminal Investigation. In its criminal information, the U.S. Attorney’s Office for the District of Columbia alleges that during questioning in September 2011, Polozola falsely testified to SEC staff that he was not aware of a $49,350 payment made on his behalf to his former employer. In fact, Polozola was aware that his attorney had repaid the $49,350 to the former employer as reimbursement of the funds he had allegedly taken for his personal use.  The payment was made at Polozola’s direction and with Polozola’s funds. Polozola pled guilty to a one-count information charging him with making a false statement to government officials in violation of 18 U.S.C. § 1001.  A sentencing hearing is scheduled for 3/26/12. For further details, go to:   [SEC PR 12-7, 1/12/12].