The fallout from the SEC's attack on the Morgan Keegan [profile] mutual fund directors just spread to the broader accounting world.

Sarah Lynch of Reuters reports that On Friday trustee Mary Stone resigned from the Financial Accounting Foundation, as she is one of eight ex-Morgan Keegan mutual fund board members whom the SEC charged earlier this month. Stone went on leave on December 10, the day the regulatory agency filed charges.

The foundation oversees the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). Stone works as director of the accounting school at the Culverhouse College of Commerce at the University of Alabama. She joined the foundation in 2011 after being appointed in 2010.

A spokesman for the foundation did not give Reuters a reason for Stone's departure. The wire service could not immediately reach Stone for comment.

The law firm K & L Gates is defending Stone and five of the other ex-Morgan Keegan mutual fund directors. K & L Gates attorney Jeffrey Maletta previously released a statement saying that the directors "emphatically deny" the SEC's accusations of fair value-related failure.

"The SEC action can only be explained as a misguided attempt to retroactively regulate enforcement in an area in which the SEC has been unwilling or unable to provide meaningful guidance through the normal regulatory process," Maletta stated. 

Edited by: Neil Anderson, Managing Editor


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