The Department of Consumer Affairs Board of Accountancy takes consumers' accusations against licensed accountants seriously. The board also follows news of arrests or criminal convictions of its licensees. It is in your best interests to act as fast as possible if you hold a California-certified public accountant (CPA) license and face accusations or statements of issues against you. The licensing board has several disciplinary actions, including revocation or suspension for those found guilty of any crime or malpractice. Hiring a skilled, license defense attorney can save your license and livelihood. We have decades of experience dealing with the Accountancy Board at the Oakland License Attorney. Our attorneys are dedicated to fighting for your license and livelihood.

The Duties Of Certified Public Accountants

The top priority for every business is to keep its finances in order. Most companies understand the importance of hiring a financial expert to handle their budget, records, taxes, and other financial paperwork. All businesses rely on certified public accountants to help them stay legally compliant and informed of their financial status. Businesses also rely on certified public accountants to keep them in the proper position to make decisions, enhancing future revenue growth and customer base.

Unfortunately, it is easier to lose a CPA license after persevering through years of education and training and going through a tedious licensing process. Accountants can be accused of financial offenses, like money laundering, embezzlement, and fraud. It is easy for a person to assume that an accountant committed a crime because of the risky nature of their job.

Accountants are always in constant interaction with business finances. Often, a minor error with no ill motive can jeopardize your CPA license. In other cases, a disgruntled business owner could claim you were incompetent or negligent in explaining his business failures. In this case, you need a skilled, licensed attorney to walk with you, regardless of the accusations you face.

The Role Of The Board Of Accountancy

The California Board of Accountancy issues the following licenses:

  • Accounting partnership.
  • Accounting corporation.
  • Accounting firm.
  • Certified public accountant.

The first three licenses are issued to businesses, while the fourth license is issued to individuals.

The board's mission and vision are centered on protecting the public from all forms of fraud. The board was instituted to govern accountants and accounting corporations, protect the public against financial harm, and uphold high levels of professionalism in the industry.

The Board of Accountancy discharges its duties by restricting the issuance of accounting licenses to individuals deemed eligible and likely to serve the public good. It is also involved in the monitoring of industries by ensuring all accountants and firms do the following:

  • Comply with the Business and Professions Code.
  • Comply with the regulations of the board.
  • Comply with the California Accountancy Act, and
  • Other relevant rules and regulations.

The Board of Accountancy takes in a steady stream of written accusations. The board officials initiate investigations when notified that a licensed accountant is facing criminal charges. They will also take quick action if you have prior unrevealed criminal convictions on your police record.

The board could impose the following disciplinary actions to enforce its standards:

  • Revoke or suspend your license.
  • Issue a citation and accompanying administrative fee.
  • Allow a stay of revocation and license probation.
  • Issue a letter of public reprimand.
  • Deny a new application for an accounting license.
  • File criminal or civil charges in addition to any board discipline.

The following are some of the violations that could make the board take disciplinary action against you:

  • Being under discipline by the licensing board of another U.S state or agency.
  • Having a prior criminal conviction that is related to your qualifications or duties as an accountant.
  • Misappropriation of funds, embezzlement, forgery, fraud, and similar white-collar offenses.
  • Aiding and abetting tax evasion.
  • Breach of fiduciary duty.
  • Departing from generally accepted accounting practices.
  • Unprofessional behavior.
  • Ordinary negligence, gross negligence, or incompetence in the performance of one's accounting duties.
  • Practicing without a license or outside the limit of your license.

You must take the allegations leveled against you seriously. You could be quick to dismiss some allegations as "unsubstantiated," but you never know what the board could do later. If the board files formal allegations against you, anyone will access them because they are posted on the board's website. You should hire an attorney immediately after receiving a "Notice of Investigation." Contact an attorney if you suspect someone has filed a case against you. The sooner you act, the better your chances of securing a favorable outcome.

The Effects Of Criminal Conviction On Your Accountancy License

Some certified public accountants and other individuals with accountancy licenses face criminal charges at some point in their careers. The police, in cooperation with the Board of Accountancy and the Attorney General, commonly conduct thorough operations to gather evidence.

The board could impose additional disciplinary actions besides the criminal trial and possible sentence. Generally, the standard is that your charges must be substantially related to your profession. However, the board can always look at a "wider view" of what amounts to "substantially related."

The following are some of the offenses that would or could be regarded as substantially related to your accounting practice:

  • Failure to make proper disclosure.
  • All fraud crimes.
  • Tax evasion.
  • Sexual assault or domestic violence.
  • Possession with intent to sell.
  • Simple possession of a controlled substance.
  • DUI or DUID.

Board Investigations

The board does not consider all the allegations leveled against you. Allegations must be credible and actionable. For example, the board cannot intervene in a minor fee disagreement or investigate you because the client felt you were too brusque. There are cases where your attorney can intervene early and settle the case before you are investigated.

The board will always issue you a notice of investigation whenever you are under investigation. The notice can include the following:

  • Details of accusations leveled against you.
  • A list of your due process rights.
  • Order to respond to the allegations against you in writing.

The board has the discretion to make several orders for information and materials. It can order you to show up at an investigative hearing. In this case, you could be asked to give your perspective on the charges and to respond to any questions the board has.

The board has the power to explore all avenues of investigation. It could talk to your supervisors, colleagues and subpoena witnesses. You have the right to a presumption of innocence and cannot face any disciplinary action until proven guilty.

You can only face disciplinary action if the board has clear and convincing evidence of your guilt. Generally, the law does not specifically entitle you to legal representation during the investigative stage. However, it is recommended that you secure the services of a skilled, license defense attorney. Your attorney will accompany you to any investigative meetings or hearings, but beyond this, he/she can do the following:

  • Negotiate with all the parties on your behalf.
  • Gather and present the evidence to challenge your charges.
  • Help you create answers to questions.
  • Draft your response to the charges.
  • Work with you to create a defense strategy.

At this early stage, your attorney will ensure the board respects your rights and gives you a fair hearing. You must cooperate with the investigators because failure to do so is a crime. While cooperating with the investigators, you should avoid anything that could harm your case.

Investigative Results

The board has the following options to resolve the investigation:

Closure

Your case could be closed because of lack of sufficient evidence. You can only face disciplinary evidence if there is ample evidence indicating that you violated the quality standards, committed a crime, or abused your relationship with a client.

Citation

The board can decide whether to issue you a citation. Citations are not formal disciplinary actions. The board is likely to issue a citation if you have committed a minor violation.

Formal Discipline

The board can impose a formal discipline upon discovering that you have violated the Accountancy Act.

Filing Charges

Allegations could be filed against you from a variety of sources and for a variety of reasons. The strength of the allegations in the Board of Accountancy's view also varies greatly. In the initial stages, most accusations can be dismissed for insufficient evidence. Other claims can be investigated for months on end.

It takes at least five months to file the accusation against you, and the final judgment is rendered in your case. In some cases, it can also take longer for the final ruling to be made. If you have been issued an interim suspension, your attorney can fight to overturn it so you can continue your practice during the investigation.

Your attorney can try to have your case dismissed. In this case, he/she must fight early and firmly to avoid any harmful public exposure against your practice. An attorney could also negotiate a favorable deal, allowing you to keep your license.

The board can file a formal accusation that will be posted on their website for clients to see. Usually, the board can only do this in cases it deems to have more merit. At this point, however, your attorney could have a right and a chance to respond with a Notice of Defense. You have a right to challenge the statement of issues outlined in the allegations against you. Most cases always end at this point with a favorable deal or dismissal.

Administrative Hearing

Some cases are filed successfully and move on to a formal administrative hearing. If your case moves to the hearing, your attorney must develop a good defense strategy to fight in your best interest. Your attorney will have a chance to table their mitigating evidence and challenge the prosecutor's evidence. The prosecutor will also have a chance to present their aggravating evidence. An administrative law judge (ALJ) presides over the hearing.

The following are the aggravating factors that could enhance the severity of disciplinary action:

  • Violating the conditions of license probation for a previous crime.
  • Failing to cooperate with the board or its investigators.
  • Securing financial gain for yourself as a result of the violation.
  • An offense involved misappropriation of funds or severe breach of your fiduciary duties.
  • You were aware that serious harm could have happened to someone else, especially if the person was in a vulnerable class.
  • The financial harm was significant.
  • The actual financial harm that was sustained by a customer or client.
  • If you have prior professional discipline, particularly relating to the current case.
  • If your offense was willful and premeditated.

The following are mitigating factors that could attract a lesser sentence but not a dismissal:

  • A significant time has passed since you committed the crime, and you have not committed a subsequent offense.
  • You were less guilty than others involved in the same crime.
  • You already made restitution at your own initiative.
  • If you show remorse.
  • Presenting evidence of rehabilitation.
  • Cooperating with the board and investigators throughout the investigation.
  • If you secured very little, did not secure any actual financial gain from the crime, or did not intend to gain financially from the crime.
  • You did not commit a serious breach of your fiduciary duties.
  • Your offense was unintentional or committed on the spur of the moment under heavy pressure.
  • The harm that could have occurred due to your actions was minor.
  • No client, consumer, or public suffered actual harm.

You can be awarded a stay revocation with probation rather than a license suspension or revocation by proving the above and other mitigating factors. Your attorney could also negotiate for a shorter probation duration and less stringent probation conditions.

Find a Professional License Defense Attorney Near Me

If you or your loved one faces criminal or violation of board policies allegations and your professional license is at risk, our attorneys can help. You have worked hard to earn your certified public accountant license. With the help of an attorney, you can use all means possible to defend your license. We at the Oakland License Attorney have skilled attorneys who can help you safeguard your certified public accountant license. We have helped many professionals fight the allegations against them and achieved favorable outcomes. Contact us at 341-234-0408 to speak to one of our attorneys.