Disciplinary Actions / License Restrictions
This list contains all enforcement decisions within the past seven years for those found to be in violation of the California Accountancy Act and/or California Board of Accountancy regulations: summaries for all licensees with license restrictions; and summaries of decisions older than seven years but occurring since July 1, 1993, for licenses revoked or surrendered.
The CBA may revoke or suspend a license, or impose probation on the licensee for violation of applicable statutes or regulations. The standard probationary terms, as well as case-specific probationary terms, are included in all cases of probation. The standard probationary terms are listed in the Manual of Disciplinary Guidelines and Model Disciplinary Orders.
For more information or details of prior enforcement actions, or for information regarding possible citations and fines, please contact the CBA at:
California Board of Accountancy
2000 Evergreen Street, Suite 250
Sacramento, CA 95815-3832
Attn: Enforcement Division
E-mail: enforcementinfo@cba.ca.gov
Telephone: (916) 561-1729
FAX: (916) 263-3673
Disciplinary Actions / License Restrictions Index
INDEX E
E-Fang Accountancy Corporation City of Industry CA COR 5055
CBA Actions
Revocation stayed with three years' probation, via stipulated settlement.
The licenses for Ms. Tsai and E-Fang Accountancy Corporation with Ms. Tsai as sole shareholder are suspended for 30 days.
All of the respondents' audit, review and compilation reports and work papers are subject to peer review.
All work papers and draft reports for audit engagement undertaken by the respondents are subject to review by a qualified outside CPA approved by the Board.
Ms. Tsai shall complete 40 hours of additional continuing education courses in accounting and auditing as specified by the Board.
Respondents are required to reimburse the Board $9,948.21 for its investigation and prosecution costs.
Other standard terms and conditions.
Effective December 26, 2008
Also See:
Cause For Discipline
Ms. Tsai and E-Fang Accountancy Corporation with Ms. Tsai as sole shareholder (respondents) admitted to committing gross negligence, violating professional standards, and failing to issue a report in accordance with professional standards in performing an audit of a securities firm for the fiscal year ended December 31, 2005.
The final audit report issued by the respondents varied significantly from the AICPA's professional standards as follows:
- The report contained typographical errors;
- The report failed to give an opinion on various financial statements, including results of operations, and cash flows;
- Supplementary schedules were omitted;
- A supplemental report on internal control was omitted;
- The balance sheet overstated the current asset "Securities Owned at Fair Value" by $540,000 due to the respondents' failure to compute and adjust the book value to fair value for the year ending December 31, 2005.
The Accusation also alleged that the respondents 1) understated the auditee's "current liability account held temporarily for customer" and "current asset account held temporarily for customer" resulting from an improper audit adjustment in the amount of $582,761 and 2) overstated "commission income" and "operating expenses" in the amount of $250,000 for two transactions that were external to the auditee. However, the respondents did not admit to these specific allegations and charges in this stipulated settlement.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, §§ 5100 (c) and 5062. California Code of Regulations, Title 16, Division 1, § 58.
Related Documents:
Elana M. Mitchell, CPA, Inc. Huntington Beach CA COR 5229
CBA Actions
Revocation of CPA Certificate, via default decision.
Effective January 29, 2010
Also See:
Cause For Discipline
Ms. Mitchell and Ms. Mitchell's Firm are subject to disciplinary action for their failure to comply with the CBA's Citations issued on November 14, 2006.
The CBA issued Citations to Ms. Mitchell and Ms. Mitchell's Firm for engaging in the practice of public accountancy without valid permits. Ms. Mitchell's CPA license expired as of February 1, 2007, and the Firm's registration expired as of March 1, 2007. Ms. Mitchell was also cited for failure to respond to the CBA's inquiries. The CBA's Citations required payment of fines of $1,000 by each Respondent. Following Affirmed Citations, Respondents submitted renewal applications that could not be processed without resolving the outstanding fines.
Subsequently, Ms. Mitchell submitted the renewal application and a check for $2,000 to pay the outstanding fines. The check was returned for insufficient funds. The administrative fines assessed remain outstanding.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, § 5100 (g). California Code of Regulations, Title 16, Division 1, § 95.4.
Related Documents:
Erickson, Jon R. Laguna Beach CA and Chicago CPA 30744
CBA Actions
Revocation of CPA Certificate, via default decision.
Effective March 8, 1998
Cause For Discipline
During 1993 and until April 1994, Respondent was chief financial officer of Platinum Software Corporation (PSC), a publicly-traded company. Respondent participated in the recording of, or caused to be recorded, transactions for which revenue recognition was improper for the fiscal year ended June 30, 1993, and for the quarters ended September 30, 1993, and December 31, 1993. He signed Form 10-K for the fiscal year ended June 30, 1993, and Form 10-Q for the quarters ended September 30, 1993, and December 31, 1993, with full knowledge that the financial statements included therein incorporated entries that misstated revenues.
On or about June 3, 1996, the Securities and Exchange Commission (SEC) entered an Order whereby, through a settlement offer, it permanently barred Respondent from practice before the SEC and banned him from serving as an officer or director of a publicly-traded company for 10 years.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, § 5100(g) and (i).
Related Documents:
Ernest E. Dow & Co., An Accountancy Corporation Los Angeles CA COR 6212
CBA Actions
Revocation stayed with three years' probation, via stipulated settlement.
Mr. Dow shall take and pass with a score of 90 percent or better, a CBA approved ethics examination.
Mr. Dow shall complete 24 hours of additional professional education courses.
Respondents shall maintain an active license status.
Mr. Dow is required to reimburse the CBA $6,500 for its investigation and prosecution costs.
Standard conditions of probation.
Effective June 20, 2010
Also See:
Cause For Discipline
Mr. Dow admits the truth of each and every charge and allegation in Accusation No. AC-2009-22.
On or about July 29, 2008, Respondent's privilege to practice before the United States Securities and Exchange Commission (SEC) as an accountant was censured. The discipline by the SEC resulted from Respondent's issuance of an audit report dated December 2, 2004, when Respondent's firm was not registered with the Public Company Accounting Oversight Board (PCAOB), in violation of Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice.
Respondent failed to report to the CBA the occurrence of the SEC instituting administrative proceedings against Respondent on or about September 13, 2007.
Respondent issued the audit report on or about December 2, 2004 when his permit to practice as a Certified Public Accountant was in delinquent status. Respondent's license was in a delinquent status from July 1,2003 to June 19, 2005.
Respondent also failed to complete sixteen (16) hours of Accounting and Auditing continuing education and six (6) hours of Fraud continuing education in his license renewal period ended June 30, 2007.
Between on or about January 3, 2008, and December 18, 2008, Respondent practiced public accountancy under the unregistered corporate name of Ernest E. Dow & Co., an Accountancy Corporation.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, §§ 5100 (l), 5100 (g), 5063 (b)(3), 5050 (a), and 5060 (b). California Code of Regulations, Title 16, Division 1, §§ 87 (c), 87 (d), and 94.
Related Documents:
Estrada, Severo " Roy " Camil San Jose CA CPA 35696
CBA Actions
Surrendered certificate, via stipulated settlement.
Effective January 7, 2007
Cause For Discipline
For the purpose of resolving the charges and allegations in Accusation No. AC-2005-11, Mr. Estrada admits he performed an audit of a foster care provider, regulated by the California Department of Social Services, that was grossly negligent.
The audit report did not conform to professional standards, the financial statements did not include all required disclosures, and the working papers did not have all required documentation.
Mr. Estrada engaged in the practice of public accountancy while his license was in inactive status.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, §§ 5100 (c) and (g), 5062, and 5050. California Code of Regulations, Title 16, Division 1, § 58.
Related Documents:
Evans, Drew Wesley South Bend IN CPA 92055
CBA Actions
Revocation of CPA license, via default decision.
Effective October 27, 2012
Cause For Discipline
Accusation No. AC-2012-48 contains the following allegations:
Mr. Evans was convicted of a crime substantially related to the qualifications, functions and duties of a certified public accountant. On or about October 4, 2011, in a criminal proceeding entitled People v. Drew Evans in the Butte County Superior Court of California, Case Number CM035112, Mr. Evans was convicted by his plea of no contest to embezzlement in violation of Penal Code section 504, a felony, and being under the influence of methamphetamine, a controlled substance, in violation of Health and Safety Code Section 11550(a), a misdemeanor. The circumstances of Mr. Evans’s crimes are that on or about September 6 and September 9, 2011, Mr. Evans, while an accountant for Acon Church, fraudulently appropriated money or other personal property of a value exceeding $400.00. On or about September 9, 2011, Mr. Evans unlawfully used and was under the influence of a controlled substance, methamphetamine.
Mr. Evans failed to report his October 4, 2011 conviction to the CBA within 30 days after it was entered by his plea made that same date, as required by section 5063 of the Business and Professions Code.
Mr. Evans also failed to notify the CBA of a change of address within 30 days and he did not respond to CBA inquiries within 30 days.
Violation(s) Charged
Business and Professions Code, Division 3, Chapter 1, §§ 5100 (a), (g), (i), (k) and 5063. California Code of Regulations, Title 16, Division 1, §§ 3 and 52.
Related Documents:
Enforcement Definitions
A formal document that charges violation(s) of the laws under CBA's jurisdiction including, the California Accountancy Act and/or CBA regulations by a licensee. The charges in the accusation are allegations. Allegations are not a final determination of wrongdoing and are subject to adjudication and final review by the CBA pursuant to the Administrative Procedure Act.
Cost Recovery
The licensee is ordered to pay the CBA certain costs of investigation and prosecution including, but not limited to, attorney fees.
Default Decision
The licensee failed to file a Notice of Defense or has otherwise failed to request a hearing, object, or otherwise contest the accusation. The CBA takes action without a hearing based on the accusation and documentary evidence on file.
Effective Date
The date the disciplinary decision becomes operative.
Probation
The licensee may continue to engage in activities for which licensure is required, under specific terms and conditions.
Reinstatement
A revoked license that is restored, not sooner than one year from the date of revocation, to a clear or inactive status after petition to and approval by the CBA. Reinstatement may include probation and/or terms and conditions.
Revocation
The individual, partnership, or corporation no longer is licensed as a result of a disciplinary action.
Stayed
The action does not immediately take place and may not take place if the licensee complies with other conditions (such as a probation term).
Stipulation
The matter is negotiated and settled without going to hearing.
Surrendered
The licensee has surrendered the license. The individual, partnership, or corporation no longer is licensed. The CBA, however, may impose discipline against a surrendered license in certain circumstances. Surrender may also require certain conditions be met should the former licensee ever choose to reapply for licensure.
Suspension
The licensee is prohibited for a specific period of time from engaging in activities for which licensure is required.
Disclaimer for Disciplinary Actions/License Restrictions Summary
The reports contained as part of this website represent summaries of those formal disciplinary orders issued by the Department of Consumer Affairs (Department) and its participating programs, boards, committees, and commissions, imposing suspension, revocation or other discipline. Enforcement proceedings that are resolved by dismissal of the accusation or otherwise result in no actual discipline of a license are not reported at this website.
Summary information on recent orders is prepared approximately thirty (30) days after the final decision date of an enforcement case. Therefore, although this website may presently lack any such report, some licensees will actually be named in accusations, or be subject to disciplinary orders. The lack of a summary for a particular licensed person does not mean that the licensee has never been the subject of an accusation or administrative discipline.
The brief summaries offered at this website are not intended as substitutes for the actual decisions and orders issued by the Department and its participating programs, boards, committees and commissions. Copies of those decisions and orders are available at no cost by writing to the designated address for each program or board.
Also, the actions reported here may not be final and may not reflect any judicial action to stay or modify the administrative order. You should not take any action based on information contained in these summaries without verifying the information and determining whether the administrative order has been stayed or modified by a court.
As used in this summary, the term "accusation" is a formal document which notifies a licensee of the agency's charges against the licensee, and that requests a disciplinary order. The licensee is entitled to contest the charges in a formal hearing before an administrative law judge. An accusation is usually resolved by an agency decision following such a hearing or by an agency decision pursuant to a settlement agreement. Often there is a considerable period of time between the date of filing an accusation and the resolution of the accusation.
The term "suspended" means that the licensee is prohibited for a period of time from engaging in activities for which licensure is required, usually for a specified number of days or months. A suspension will usually be imposed in conjunction with a lengthy period of probation of one or more years.
The term "revoked" means that the individual, partnership, or corporation is no longer licensed as a result of an enforcement action. Revocation is not necessarily permanent. The revoked licensee has the right, one year or more after the revocation, to petition the California Board of Accountancy for reinstatement. Reinstatement of the revoked license must be approved by the CBA and may include probation and/or terms and conditions.
For a copy of these actions, please contact the CBA by mail, e-mail, telephone, or fax as listed below:
California Board of Accountancy
2000 Evergreen Street, Suite 250
Sacramento, CA 95815-3832
Attn: Enforcement Division
E-mail: enforcementinfo@cba.ca.gov
Telephone: (916) 561-1729
FAX: (916) 263-3673