2011 Disciplinary Actions 


    January 2011
    April 2011
    July 2011
     October 2011
    Anderson, Traci J.
    Broullire, Joseph
    Hozie Stephen
    Rainey, Esther
    Riddle, Mark S.
    Stapleton, Gary D.
    Steiner, Robert A.
    Tay, Patti Hsu
    Zelcer, Moishe
    Bowers, David A.
    Castellanos, Elias S.
    Cheatham, David T.
    Denney, Quinten M.
    Dulock, Fred B.
    Ferris, James F. Jr.
    Freeman, Lewis B.
    Funderburgh, Lee L. Jr.
    Hubbard, Murphy M.
    Irwin, Lawrence B.
    Kase, Randal L.
    Katz, Harold A.
    Kingery, James W.
    Lansford, Paul A.
    Morris, M. Jackson
    Mulcahey, Michael C.
    O’Donnell, Lawrence A.
    Rovito, John J.
    Thompson, Pamela J.
    Yamagata, Kerry
    Adams, James S.
    Brown, Nancy L.
    Canahai, Sophia
    Cannon III, William B.
    Chisolm, Todd D.
    Crane, James T.
    Dick, Rollin M.
    Dohan, Steven, H.
    Drogin, Michael R.
    Gartner, Gerald
    Goslee, Dwight J.
    Hanni, Steven M.
    Johnson, G. Victor
    Johnson, Jeffrey
    Kline, Joanne
    Litzinger, Tracy Y.
    Miller, Richard J.
    Mody, Yatin D.
    Newman, Todd
    Ohendalski, Richard S.
    Saiz, Thomas J.
    Schuyler, John B.
    Szabo, Craig A.
    Wehmhoff, James C.
    Bogdanoff, Richard
    Cannon, William B.
    Chambers, Wayne D.
    Dwyer, John W.
    Finder, Seymour
    Golden, Larry R.
    Goode, Elaine
    Gordon, Jr., Eldridge E.
    Johnson, Jay C.
    Larson, Charles B.
    Sanders, Berta M.
    Seda, Michael A.
    Shapiro, Jay J.
    Smith, Julie DiAnn
     

    April 2011

    In lieu of an investigation of alleged violations of the Codes of Professional Conduct of the AICPA and/or state CPA societies, the following ethics case has been resolved by settlement agreement under the Joint Ethics Enforcement Program:

    Member

    Pamela J. Thompson of Phoenix, Arizona, effective December 9, 2010
    On December 19, 2007, without admitting or denying the findings, Ms. Thompson entered into a Securities and Exchange Commission (SEC) Offer of Settlement in settlement of the SEC’s allegations that she violated Sections 5(a), 5(c), 17(a)(2), and 17(a)(3) of the Securities Act and Section 17A of the Exchange Act and Rule 17Ac2-1 thereunder in connection with her role as outside chief financial officer and consultant for a Company during the attempted reverse merger of that company with an SEC registrant. Ms. Thompson was ordered to cease and desist from committing or causing any violations and any future violations of the above sections. She was also barred from association with any transfer agent, with the right to reapply for association after three years to the appropriate self-regulatory organization, or if there is none, to the Commission. Finally, she was ordered to pay disgorgement of $7,632 and prejudgment interest of $830.82 to the United States Treasury.

    Agreement
    In consideration of the ECA foregoing a full investigation of Ms. Thompson’s conduct as described above and in consideration of the ECA foregoing any further proceedings in this matter, Ms. Thompson agrees as follows:
    1. To waive her rights to a hearing under section 7.4 of the AICPA bylaws;
    2. To neither admit nor deny the allegations of the complaint;
    3. To be terminated from membership in the AICPA; and
    4. That the ECA shall publish her name and the terms of this settlement agreement as written herein.


    Murphy M. Hubbard of Springfield, Missouri
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Hubbard’s AICPA membership was terminated, effective December 30, 2010. Mr. Hubbard was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     


     

    Lawrence B. Irwin of Schaumburg, Illinois
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Irwin’s AICPA membership was terminated, effective December 30, 2010. Mr. Irwin was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     


     

    Michael C. Mulcahey of Port Allegany, Pennsylvania
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Mulcahey’s AICPA membership was terminated, effective December 30, 2010. Mr. Mulcahey was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     


     

    M. Jackson Morris of Troy, Michigan
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Morris’ AICPA membership was terminated, effective March 31, 2011. Mr. Morris was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     


     

    Lawrence A. O’Donnell of Aurora, Colorado
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. O’Donnell’s AICPA membership was terminated, effective December 30, 2010. Mr. O’Donnell was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     



     

    David A. Bowers of Trussville, Alabama
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Bowers’ AICPA membership was terminated, effective March 3, 2011, following revocation of his CPA certificate by the Alabama State Board of Public Accountancy in connection with his conviction of the felony offense of Theft of Property in the First Degree.

     


     

    Elias S. Castellanos of Coral Gables, Florida
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Castellanos’ AICPA membership was terminated, effective December 23, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Castellanos pled guilty to violating Title 18, U.S.C. Section 666(a)(1)(A), Theft Concerning Programs Receiving Federal Funds.

     


     

    David T. Cheatham of Stephenville, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Cheatham’s AICPA membership was terminated, effective December 23, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Cheatham pled guilty to charges of theft.

     


     

    Quinten M. Denney of Parkville, Missouri
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Denney’s AICPA membership was terminated, effective December 23, 2010, following revocation of his CPA certificate by the Missouri State Board of Accountancy for violating state board statues in connection with his plea of guilty to a felony charge of theft.

     


     

    Fred B. Dulock of Waco, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Dulock’s AICPA membership was terminated, effective December 23, 2010, following revocation of his CPA certificate by the Texas State Board of Public Accountancy for violating the terms and conditions of an Agreed Consent Order that he entered into with the state board.

     


     

    James F. Ferris, Jr. of Collinsville, Illinois
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Ferris’ AICPA membership was terminated, effective March 3, 2011, following revocation of his CPA certificate by the Missouri State Board of Accountancy for failing to enroll in peer review and for failing to respond to the Board’s communications.

     


     

    Lewis B. Freeman of Ft. Lauderdale, Florida
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Freeman’s AICPA membership was terminated, effective January 24, 2011, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Freeman pled guilty to violating Title 18, U.S.C. Section 1349, Conspiracy to Commit Mail Fraud.

     


     

    Lee L. Funderburgh, Jr. of Houston, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Funderburgh’s AICPA membership was terminated, effective January 24, 2011, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Funderburgh was found guilty of violating Title 26, U.S.C. Section 7206(2), Aiding and Assisting in the Preparation and Presentation of False Tax Returns.

     


      

    Randal L. Kase of New York, New York
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Kase’s AICPA membership was terminated, effective November 29, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Kase pled guilty to violating Title 18, U.S.C. Section 510, Forging Endorsements on Treasury Checks of the United States and Title 18, U.S.C. Section 1341, Frauds and Swindles.

     


     

    Harold A. Katz of Scotch Plains, New Jersey
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Katz’ AICPA membership was terminated, effective March 3, 2011, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Katz pled guilty to violating Title 18, U.S.C. Section 371, Conspiracy to Commit Wire Fraud.

     


     

    James W. Kingery of Lubbock, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Kingery’s AICPA membership was terminated, effective December 23, 2010, following revocation of his CPA certificate by the Texas State Board of Public Accountancy for violating Board Rules: 501.90(12) intentionally misrepresenting facts or making a misleading or deceitful statement to board staff; 501.90(17) breaching the terms of an Agreed Consent Order; 501.93, regarding responses; and 527.4 regarding participation in peer review.

     


     

    Paul A. Lansford of Stephenville, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Lansford’s AICPA membership was terminated, effective December 23, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Lansford pled guilty to charges of theft.

     


     

    John J. Rovito of King of Prussia, Pennsylvania
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Rovito’s AICPA membership was terminated, effective January 26, 2011, following revocation of his CPA certificate by the Pennsylvania State Board of Accountancy for issuing twenty-three documents purporting to be “Civil Complaints” against various individuals during the period of April 30, 1996 through September 17, 2007.

     


     

    January 2011



    Patti Hsu Tay of Brooklyn, New York
    In lieu of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Ms. Tay entered into a settlement agreement under the Joint Ethics Enforcement Program. Without admitting or denying the alleged violations of the Code of Professional Conduct of the AICPA, Ms. Tay was expelled from membership in the AICPA effective November 4, 2010, as a result of disciplinary action imposed by the Securities Exchange Commission under SEC Administrative Proceeding File No. 3-13607 and Civil Action No. 09-CV-6813. Ms. Tay was permanently barred from serving as an officer or director of a public company pursuant to Section 21(d)(2) of the Securities Exchange Act, and was suspended from appearing or practicing before the Commission as an accountant.

     


     

    Moishe Zelcer of Brooklyn, New York
    As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Zelcer’s AICPA membership was terminated effective November 26, 2010. Mr. Zelcer was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

     


     

    Traci J. Anderson of Huntersville, North Carolina
    Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Anderson’s AICPA membership was terminated, effective September 17, 2010, as a result of the Public Company Accounting Oversight Board (PCAOB) barring Ms. Anderson from being an associated person of a registered public accounting firm based on their findings that she violated PCAOB rules and auditing standards in auditing the financial statements of three issuer clients from 2007 to 2009.

     


     

    Joseph Broullire of Bethesda, Maryland
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Broullire’s AICPA membership was terminated, effective September 22, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Broullire pled guilty to violating Title 18, U.S.C. Section 371, Conspiracy to Commit Wire Fraud.

     


     

    Stephen Hozie of Plano, Texas
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Hozie’s AICPA membership was terminated, effective September 10, 2010, as a result of the Securities and Exchange Commission (SEC) suspending him from appearing or practicing before the Commission as an accountant with the right to apply for reinstatement after five years of the Order. This decision was based on the SEC’s allegations that Mr. Hozie fraudulently understated a Company’s first quarter 2007 loan loss reserves by tens of millions of dollars converting the Company’s loss into a fictional profit; made misleading disclosures concerning the Company’s financial condition including misrepresenting the Company’s liquidity and failing to adequately disclose the riskiness of the mortgages the Company originated and held; and for misleading the Company’s auditor about the adequacy of the reserves.

     


     

    Esther Rainey of LaGrange, Georgia
    Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Rainey’s AICPA membership was terminated, effective November 1, 2010, following an indefinite suspension by the Internal Revenue Service for failing to timely file several Federal tax returns.

     


     

    Mark S. Riddle of Murfreesboro, Tennessee
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Riddle’s AICPA membership was terminated, effective September 10, 2010, following revocation of his CPA license by the Tennessee State Board of Accountancy in connection with his plea of guilty to three felony counts of the sale of unregistered securities.

     


     

    Gary D. Stapleton of Clackamas, Oregon
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Stapleton’s AICPA membership was terminated, effective November 1, 2010, following an indefinite suspension by the Internal Revenue Service in connection with the revocation of his CPA license.

     


     

    Robert A. Steiner of Crockett, California
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Steiner’s AICPA membership was terminated, effective September 10, 2010, following revocation of his CPA certificate by the California Board of Accountancy for failing to comply with Citation Number CT-2007-2, requiring Mr. Steiner to complete thirty hours of technical continuing education, and for failing to respond to Board communications.

     


     

    Robert A. Washko of Bayshore, New York
    Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Washko’s AICPA membership was terminated, effective September 10, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Washko was convicted of grand larceny and criminal possession of stolen property.

     

     




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