A campaign finance scandal has led Bazilio Cobb Associates to spinoff its assurance practice to BCA Watson Rice LLP.
It has only been five and a half years since Watson Rice merged with Thompson, Cobb, Bazilio & Associates (see Watson Rice Merges with TCBA).
“The transfer of the BCA assurance practice will significantly improve our client services, regionally and nationally, and strengthens our position as an industry leader,” BCA Watson Rice’s Northeast region managing partner Bennie Hadnott said in a statement.
The spinoff comes shortly after one of its former employees was accused of being involved in a campaign contributions scheme. According to a story by the WashingtonCityPaper.com, Jeffrey Thompson, the former CEO of Thompson, Cobb, Bazilio & Associates, allegedly was running a straw donor scheme.
It’s not clear if Thompson’s actions led to the spinoff of the assurance practice. However, when Accounting Today asked Hadnott what prompted the split, the managing partner posed the question, “Do you think that they would need to sell their practice if they didn’t have an issue down there?”
In mid-June, the firm sent out a release that addressed the firm’s dilemma. The firm stated that “the successor to Thompson, Cobb, Bazilio & Associates…has cooperated with the United States Attorney’s Office for the District of Columbia in its investigation of alleged campaign finance violations.” The release went on to say that “The firm is relieved that the cloud it has been under for the past 15 months will lift soon.”
The Washington Post reported that Thompson reimbursed employees for campaign donations, which took place over a period of 10 years.