Tennessee regulators issued a consumer alert Tuesday for clients of the Chattanooga-based accounting firm of JD Frost & Co., which shut down operations unexpectedly last week with three days to go before a quarterly tax filing deadline.
The Tennessee Department of Commerce & Insurance encouraged those doing business with the firm, which operated under the Croft & Frost name, to consult with another accounting firm “to ensure matters are handled as timely as possible.”
The consumer alert also suggested businesses that were using Croft & Frost attempt to obtain any personal or business records, files or documents from the firm. CPAs and CPA firms have an obligation to provide certain records, agency spokesperson Kevin Walters said.
“If you believe you have been adversely affected or harmed by the practices or the closure of JD Frost & Co., Croft & Frost and/or Jonathan D. Frost, we encourage you to file a complaint with the Tennessee State Board of Accountancy at core.tn.gov,” Walters said. “Complaints can assist us in taking appropriate regulatory actions and help protect the rights and interests of Tennessee citizens.”
Affected consumers should also consider consulting an attorney to determine their rights as consumers and whether further legal action is necessary in regards to their specific complaint, Walters said.
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Frost, a certified public accountant, opened his accounting firm in Chattanooga in 2010, and he shut down the business last week after several employees complained about not being paid for their services.
— Compiled by Dave Flessner