The Firestone Group, Ltd. (Firestone), a company engaged in real

The Firestone Group, Ltd. (Firestone), a company engaged in real estate development, entered into a contract to sell nursing homes it owned to a buyer. The buyer paid a $30,000 deposit to Firestone and promised to pay the remainder of the $28 million purchase price in the future. The profit on the sale, if consummated, would have been $2 million. To raise capital, Firestone planned on issuing $7.5 million of securities to investors. Firestone hired Laventhol, Krekstein, Horwath & Horwath (Laventhol), a national CPA firm, to audit the company for the fiscal year. When Laventhol proposed to record the profit from the sale of the nursing homes as unrealized gross profit, Firestone threatened to withdraw its account from Laventhol. Thereafter, Laventhol decided to recognize $235,000 as profit and to record the balance of $1,795,000 as “deferred gross profit.” This was done even though, during the course of the audit, Laventhol learned that there was no corporate resolution approving the sale, the sale transaction was not recorded in the minutes of the corporation, and the buyer had a net worth of only $10,000. Laventhol also failed to verify the enforceability of the contracts. Gerald M. Herzfeld and other investors received copies of the audited and invested in the securities issued by Firestone. Later, when the buyer did not purchase the nursing homes, Firestone declared bankruptcy. Herzfeld and the other investors lost most of their investment. Herzfeld sued Laventhol for securities fraud, in violation of Section 10(b) of the Securities Exchange Act of 1934. Is Laventhol liable? Herzfeld v. Laventhol, Krekstein, Horwath & Horwath, 540 F.2d 27, Web 1976 U.S. App. Lexis 8008 (United States Court of Appeals for the Second Circuit)

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more