Compliance
Flex trade secret suit inches toward resolution
According to court documents from August 31, Flex, Split Pay, and financial executive Anderson, who had interviewed for the Flex CFO position, are negotiating in good faith to reach a potential settlement in the trade secret misappropriation lawsuit. Flex filed the lawsuit on August 3, alleging that Anderson obtained and disclosed its "core financial and strategic secrets" to competitor Split Pay during the interview process. The court has approved a third-party forensic accounting review of Anderson's personal devices and requires Split to provide sworn statements. Both parties must submit a joint status update by September 30.
KPMG gets agentic tool certified for security, reliability as AI risks mount
KPMG announced its AI agent aIQ Capture received independent certification under the AIUC-1 standard, marking the first such certification for a Big Four firm. The tool, used for voice-based knowledge capture, passed over 900 technical tests. The move comes amid heightened concerns about AI autonomy risks, with experts urging CFOs to prioritize governance over quick returns.
Texas charity’s ex-CFO sentenced in $2.1M mobile check scheme
The U.S. Attorney's Office for the Northern District of Texas announced that Jeffrey Scott Keehn, former CFO of the Dallas Child and Family Guidance Center, was sentenced to 60 months in federal prison for forging signatures and embezzling over $2.1 million through remote mobile banking deposits. The court also ordered him to pay approximately $2.06 million in restitution to the victim agency and insurance companies, and to forfeit related assets.
Intuit AI expert says future of finance is real-time, not monthly
Ashley Still, Executive Vice President and General Manager of Mid-Market at Intuit, said that over the next five years, AI agents will continuously handle manual tasks such as reconciliations and report assembly, moving finance teams from monthly crunch periods to real-time operations. She introduced the new conversational AI and more than 40 AI skills in Intuit Enterprise Suite, emphasizing the combination of AI with deterministic accounting logic to ensure accuracy. On pricing, she predicted the industry will move toward a hybrid model of seats plus consumption, rather than unconstrained token-based billing. She also advised CFOs to first consolidate their data foundation before deploying AI, and to use faster growth and margin improvement as metrics for measuring returns.
FTC settles anti-trust suit against Zillow, Redfin
The FTC announced on Monday that it has reached a settlement with Zillow and Redfin in an antitrust lawsuit. Previously, the FTC alleged that the two companies conspired to restrict competition in the apartment rental ILS market through a 2025 agreement, which involved Zillow paying Redfin $100 million to shut down its ILS service. The settlement order requires Redfin to restart its rental advertising business within six months and commit to listing more properties; Zillow must assist Redfin in hiring employees and lift related restrictions. The FTC stated that the settlement secures benefits for renters and property management companies more quickly and with greater certainty than litigation outcomes.
SEC charges ex-Tricolor CEO, CFO with fraud following $1.9B collapse
The U.S. Securities and Exchange Commission has filed fraud charges against three former executives of defunct subprime auto lender Tricolor Holdings, alleging they misled investors and underwriters in a scheme that raised over $1.9 billion through asset-backed securities before the company's September 2025 bankruptcy liquidation.
SEC, FASB advance separate crypto proposals as Clarity Act stalls
The SEC unveiled a proposal for new Regulation Crypto Assets rules, offering exemptions for crypto asset investment contracts, while the FASB published proposed standards to treat certain digital assets, including stablecoins, as cash equivalents. These actions occur as the Clarity Act remains stalled in Congress.
EY ties audit turnaround to tech, talent investments
EY's deficiency rate in the 2025 PCAOB inspections fell sharply to 5%, tying with Deloitte for the lowest among the Big Four. The firm credits this to $1 billion in technology and talent investments, including AI applications and process simplification.
SEC says it will stop responding to no-action requests ‘entirely’
The U.S. Securities and Exchange Commission (SEC) announced on Friday that it will immediately and completely stop responding to no-action requests, including those from companies seeking to exclude shareholder proposals from proxy materials. This decision follows the SEC's absence from the process for most of the 2025-26 proxy season, and investor advocates have already filed lawsuits over it. The SEC stated that companies must still submit notices as required, but staff will no longer provide comments. This move is seen as part of a broader reform the SEC is considering for Rule 14a-8.
Ex-hedge fund CFO pleads guilty to $3M embezzlement scheme
The U.S. Department of Justice announced Tuesday that Theodore Woo, the former CFO of a Miami hedge fund, has pleaded guilty to a multi-year embezzlement scheme. Woo exploited his position to steal over $3 million from his employer through falsified invoices, unauthorized transfers, and personal expenses on corporate credit cards. He is scheduled for sentencing on November 18 and faces up to 20 years in prison.