The Securities and Exchange Commission has barred the New York firm Sherb & Co. and four of its employees from auditing public companies, saying they failed to properly audit three Chinese companies traded in the United States. The SEC's sanctions against Sherb & Co. are its latest action against professional entities that work with Chinese companies, having filed more than a dozen enforcement cases against such companies and their executives.

Sherb & Co. and its executives agreed to the bans on appearing or practicing before the SEC as accountants, while neither admitting nor denying any wrongdoing. Marjorie J. Peerce, a Ballard Spahr Stillman & Friedman litigation partner representing Sherb partner Christopher A. Valleau, told The Wall Street Journal that Mr. Valleau "is pleased to have resolved this matter and to move forward with the rest of his life."

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