**Release: #4132-98** **For Release: April 8,
    1998**

**CFTC FILES ENFORCEMENT ACTION
    AGAINST HENRY & HORNE, PLC, AN ACCOUNTING FIRM, AND TWO OF ITS
    ACCOUNTANTS**

The Commodity Futures Trading Commission (CFTC) announced today that it
    has instituted administrative proceedings against **Henry &
    Horne, PLC,** a public accounting firm, and **Sherald Griffin,
    CPA** and **Donna Laubscher, CPA**, all of Tempe,
    Arizona. Simultaneously, the CFTC accepted offers of settlement tendered by
    Griffin, a partner with the firm, and Laubscher, pursuant to which they are
    denied the privilege of appearing or practicing before the CFTC, with the
    right to apply for reinstatement in five years.
     The CFTC complaint against Henry & Horne alleges that from March 1992
    through September 1995, Henry & Horne performed four separate annual
    audits of O'Connell & Associates (OCA), a Vermont limited partnership,
    operated by Thomas O'Connell as a commodity pool. O'Connell is alleged to
    have operated OCA as a Ponzi scheme and defrauded investors of more than
    $14 million before he was arrested by law enforcement authorities. (Also
    today, the CFTC filed an injunctive action against O'Connell in the United
    States District Court for the District of Vermont. In that action,
    O'Connell consented to the entry of a permanent injunction and other
    relief.)
     According to the complaint, the audits of OCA, which Henry & Horne
    distributed to OCA's limited partners and which were prepared by Griffin
    and Laubscher in the course of their employment at Henry & Horne,
    failed to adhere to the requirements of Generally Accepted Auditing
    Standards (GAAS) in numerous material respects. The CFTC complaint alleges
    that as a result of the GAAS failures, Henry & Horne engaged in
    "improper unprofessional conduct" within the meaning of Section 14.8(c) of
    the CFTC's regulations. According to the complaint, "In part as a result of
    these audit reports, O'Connell was able to perpetuate OCA's criminal
    activity for an additional three and a half years, during which time he
    defrauded investors out of an additional $6,000,000." The complaint
    institutes public administrative proceedings to determine whether an order
    should be entered directing that Henry & Horne be permanently barred
    from appearing or practicing before the CFTC.

Based on the same allegations contained in its complaint against Henry
    & Horne, the CFTC simultaneously issued an order finding that Griffin
    and Laubscher engaged in "improper unprofessional conduct" within the
    meaning of Section 14.8(c) of the CFTC's regulations. Under the terms of
    the settlement with Griffin and Laubscher, they are permanently denied the
    privilege of appearing or practicing before the CFTC and agree not to apply
    to the CFTC for reinstatement for five years from the date of the order. If
    Griffin or Laubscher applies to the Commission for reinstatement after that
    date, the Commission will grant such application if it finds, upon
    consideration of their professional performance and disciplinary records
    and any other relevant information, no grounds to warrant denying them the
    privilege of appearing or practicing before it.
     Geoffrey Aronow, the Director of the CFTC's Division of Enforcement stated
    regarding today's administrative proceedings,

"The audit process provides an important bulwark for the public against
    misconduct by unscrupulous operators in the financial services industry.
    When an auditor fails to discharge its basic responsibilities when
    performing an audit of an entity involved in the futures business, the
    Division will pursue the matter vigorously and, as is the case here, seek
    substantial remedies to protect the public against the risks created by
    auditors' conduct."

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