The Marriage Is Over: Newly Merged Top 100 Firm(s) Calls It Quits

When Walnut, Calif.-based Moore Stephens Wurth Frazer and Torbet joined forces with Little Rock, Ark.-based Frost, PLLC last year, the new Frazer Frost was born and the future of the combined firm looked bright.

Frazer Frost entered the IPA Top 100 in 2010 at No. 59 with combined net revenues of $48.7 million. Now, eleven months into the merger, the two firms are calling it quits, according to published sources.

Financialinvestigator.com reports that Frost MP Dan Peregrin said in a prepared statement, “The partners of both firms have been friends for years and believed we could best build our business as one firm. Our combination agreement called for a trial period, which began on January 1, 2010, for us to ‘test the waters’ and we have been operating our businesses under the Frazer Frost, LLP name during this time.”

(Editorial Note: According to IPA’s records, there was no mention of a Trial Period.)

Peregrin told FI.com that a ‘culture clash’ led to the break up and that, “There is a lot of [issues] right now in [Chinese reverse mortgage] practice area and we just felt it would be smarter to wish them luck and stick to our practice areas.” Both firms will resume operations under their previous names, according to reports.

FI.com reported that the Moore Stephens Wurth Frazer and Torbet side has been “in hot water for a series of audits in its Chinese reverse-merger client base that appear to defy both common sense and financial probability.”

Going Concern posted additional information and the following quote from Citron Research, “If you call Frost today in Arkansas, they answer ‘Frost & Co.’ and say they’re no longer associated with Frazer. Citron spoke to Peregrin and twice he told us that the two firms have gone their own way – but if you call Frazer, they answer “Frazer Frost” and in a brief conversation with Susan Woo, the RINO auditor, she told Citron that Frazer Frost is still an operating entity.