As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. DeSilva, with the firm of Don Pedro DeSilva, entered into a settlement agreement under the Joint Ethics Enforcement Program, effective June 11, 2015.
Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee and the Maryland Association of CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. DeSilva’s failure to ensure his firm obtained an appropriate peer review.
The ECA reviewed the allegations in the referral and information publicly available on the United States Department of Labor’s EFAST website and Mr. DeSilva’s responses to such findings as well as relevant documents he submitted to support his response. The ECA charged Mr. DeSilva with a violation of the AICPA and the Maryland Association of CPA’s Codes of Professional Conduct as follows:
Rule 501, Interpretation 5 – Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies
As the partner responsible for his firm’s peer review compliance, Mr. DeSilva failed to ensure it complied with state board requirements and those of the AICPA and the Maryland Association of CPAs to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. DeSilva’s conduct as described above, and in consideration of the ECA forgoing any further proceedings in this matter, Mr. DeSilva agreed as follows:
a. To waive his rights to further investigation of this matter in accordance with the Joint Ethics Enforcement Program (JEEP) Manual of Procedures.
b. To waive his rights to a hearing under AICPA bylaws section 7.4 and the Maryland Association of CPA’s bylaws section 4(a).
c. To neither admit nor deny the above specified charges.
d. To his suspension of membership in the AICPA and Maryland Association of CPAs for a period of two years from the effective date of this agreement.
e. That the ECA shall publish his name, the name of his current firm, the charges, and the terms of this settlement agreement.f. To comply immediately with professional standards applicable to the professional services he