An independent auditor involved in the Securities and Exchange Commission’s (SEC) criminal complaint against Maria Francesca Tan has pledged to cooperate in the ongoing investigation. The corporate watchdog accused Isla Lipana & Co. of colluding with Tan’s companies in alleged illegal investment schemes.
In a statement released on Monday, Isla Lipana & Co. clarified that they were auditing MFT Group as a standalone entity and not other companies within the group, contrary to what was claimed in the SEC’s complaint filed with the Department of Justice (DOJ).
The audit firm emphasized that only Maria Francesca Tan Group of Companies Inc. (MFT Inc.) was their audit client and stressed that MFT Inc. and Foundry Ventures are separate entities.
Isla Lipana expressed its commitment to fully cooperate with the ongoing investigation by the DOJ and reaffirmed its dedication to integrity and professionalism.
The SEC’s complaint named Tan, her companies, at least 30 officers and directors, and Isla Lipana as respondents. The regulator alleged that Isla Lipana, as the independent auditor of both MFT Group and Foundry Ventures Inc. from 2018 to 2021, colluded with MFT Group in fraudulent activities by vouching for the company’s financial health despite inconsistencies and inaccuracies in their financial statements.
Isla Lipana clarified that while they audited a company with “group of companies” in its name, they only audited MFT Inc. as a standalone company. The audit firm also mentioned that they have not yet issued audit reports for the calendar years 2022 and 2023 pending completion of their audit procedures.
MFT Group, on its part, asserted that they have not received due process but expressed confidence in the DOJ’s impartiality and respect for their right to be heard through the preliminary investigation process.
