SEC: Accountant Bet Client’s Money at Client’s Casino

Also, I mean, he retired from Deloitte as a senior partner in May 2010, after 36 years there.² The fact that he couldn't afford to pay back the $110,000 in gambling debts that he incurred in one day at his client's casino is, in itself, troubling.

I cannot emphasize enough that he was the chief risk officer of Deloitte. Normally you want your chief risk officer to be a boring,anonymous sort who tries to steer clear of risk. If your chief risk officer borrows six-figure sums from clients to bet — and lose — on blackjack, and then lies about it and refuses to pay back the money, then … I don't know. There's no then. That's just amazing. James T. Adams, I salute you. You ended your accounting career in pretty much the most outrageous possible way. You know, for an accountant.

¹ The SEC doesn't name the "Casino Gaming Issuer," but it does say that it filed a 10-K on March 9, 2010. A Bloomberg CFS search suggests that it was probably Harrah's (now Caesars).

Incidentally. This is sort of terrible, but I can kind of understand it? I spent some time lightly covering gaming clients and pretty much every meeting occurred at a casino. Adams' role as "advisory partner" on the audit was basically glad-handing the audit committee, not ticking and tying numbers; if you think of him as a relationship guy in the gaming space then it seems natural that he'd spend a lot of time hanging out in casinos and probably playing a few hands or rolls or whatever. And then maybe losing a bit of money, as one does. And then the next thing you know, etc. etc.

² So his two-year suspension from practicing public accounting doesn't seem particularly onerous. And the SEC doesn't seem to be fining either him or Deloitte for this violation, or even making him pay the client back.