MobilityPay Holdings v. RBSM CA2/5

FACTS AND PROCEDURAL BACKGROUND

I. Facts

A. Kristian Finstad (Finstad) controls Content Checked Holdings, Inc. (Content Checked) In 2014, Content Checked was a corporation that owned an application for mobile devices that allowed users to scan the labels of food items and obtain information about the allergens in those items. At that time, Finstad was Content Checked’s only officer, the only member of its board of directors, its only full-time

2 employee (as Content Checked otherwise hired contract workers), and the owner of nearly all of its stock. Finstad was the only person with authorized access to Content Checked’s bank accounts. In sum, Finstad was the corporation’s sole decision maker. B. Finstad embezzles nearly $1 million Between April 2014 and March 2015, Finstad embezzled $991,453.49 from Content Checked’s bank accounts. C. Finstad hires RBSM, LLP (RBSM) to certify the accuracy of Content Checked’s financial statements After Content Checked’s prior accounting firm resigned because it “no longer had faith in the integrity of [Content Checked’s] management,” the corporation in April 2015 hired RBSM—a different public accounting firm—to certify the…