Chattanooga accountant Jonathan Frost and his CPA firm, Croft & Frost, have permanently surrendered their accounting licenses to operate in Tennessee after regulators found they failed to deliver promised services and — in part as a result of fraudulent investment schemes — left clients, investors and at least one employee without the money due to them.
The seven-page consent order approved this month by the Tennessee State Board of Accountancy was based on 18 complaints filed with the agency against Frost after his firm abruptly laid off all its staff in September.
The regulatory agency said Frost violated at least eight state rules or statutes, including bans on “dishonesty, fraud or gross negligence in performance of services.”
In signing the consent form last week, Frost admitted to the allegations — and in so doing avoided civil penalties by the regulatory agency over the specific complaints.
The agreement does not, however, explicitly affect several ongoing lawsuits against Frost in which plaintiffs seek collectively tens of millions of dollars from him and his associated firms.